Pair Trading 1

There's a few major currencies that seem to get most traders attention when it comes to pair trading. But it's not always the major pairs that offer the best trading opportunities so the smart traders know to scan all pairs to find the best combination.

It's true that the major currencies offer high volatility and rapid movements but caution should be taken. The major pairs include ones such as EUR/USD, GBP/USD, USD/JPY etc.

Just because these pairs are popular however they don't always offer the best risk because the two sides of the pairing are not always in step. That is to say that just because the Great British pound, for example, is showing strength, that the United States dollar is showing weakness. (more…)