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Foreign Currency Pairs
Key Features of Forex Trading with Evest
Foreign Currency Trading
Forex trading involves speculating on the value of one currency against another in a highly liquid, 24/5 market. Each pair, like EUR/USD, combines a base currency with a quote currency, indicating how much of the quote is needed to buy one unit of the base. This market appeals to traders due to its accessibility, potential for profit in rising and falling markets, and the amplifying effects of leverage. However, it's important to note that while leverage can increase profits, it also raises the risk of losses. The forex market is influenced by economic, geopolitical, and market sentiment factors, offering both challenges and opportunities for traders.
The Primary Benefits Of Trading Foreign Currency Pairs
The primary benefits of forex trading include its 24/5 accessibility, high liquidity, and the potential for profits in both rising and falling markets. Its round-the-clock operation allows trading across various time zones at the trader's convenience. High liquidity facilitates smoother transactions with less price impact. Additionally, forex trading offers opportunities to profit from market movements in any direction and leverages the use of capital, enabling control of large positions with smaller investments. However, it's crucial to use leverage cautiously due to its risk of magnifying losses. These aspects make forex trading appealing to a broad spectrum of traders.
You can trade foreign currency pairs around the clock 24/5 from Monday to Friday with leverage of up to 1:400, which means that profits and losses are multiplied.
Caution Is Essential Here
Trading foreign currency pairs requires caution due to high market volatility and the risks associated with leverage, which can magnify both profits and losses. A solid risk management strategy and an informed approach to market trends are crucial.
The Top Traded Indices on Our Platform
Euro against US Dollar
Known as the 'Fiber,' it's the most traded forex pair. It reflects the economic dynamics between the Eurozone and the United States and is known for its liquidity and tight spreads.
US Dollar against Japanese Yen
Referred to as the 'Gopher,' this pair indicates the relationship between the US and Japanese economies. It's popular for its high liquidity and potential for significant price movements.
British Pound against US Dollar
Called the 'Cable,' this pair represents the economies of the United Kingdom and the United States. It's characterized by its volatility and is influenced by both economic and political events in the UK.
Australian Dollar against US Dollar
Known as the 'Aussie,' it's influenced by Australia's commodity exports like gold and iron ore. This pair is popular for its correlation with commodity prices.
US Dollar against Canadian Dollar
Referred to as the 'Loonie,' this pair is significantly influenced by oil prices, as Canada is a major oil exporter. It's also affected by changes in US economic policies.
US Dollar against Swiss Franc
Known as the 'Swissie,' this pair is considered a safe haven due to Switzerland's stable economy and financial system. It can see less volatility during economic uncertainty.
New Zealand Dollar against US Dollar
Called the 'Kiwi,' it's influenced by New Zealand's agricultural and trade sectors. This pair is known for its susceptibility to changes in global trade conditions.
Euro against Japanese Yen
This cross-currency pair represents the Eurozone and Japanese economies without involving the US Dollar. It's popular for its higher volatility and can be influenced by economic policies in both Europe and Japan.