As a foreign exchange novice, just contact with this circle, faced with a wide variety of foreign currency, there may be a kind of difficulty in choosing.
So today Xiaobian to discuss with us: foreign exchange novices how to choose trade currency?
First, as a new foreign exchange investor, you need to know what the main, or common, currencies are.
It can be roughly divided into the following 6 categories:
Among the six kinds of money pairs above euro/US dollar (EURUSD), British pound/US dollar (GBPUSD), Australian dollar/US dollar (AUDUSD), US dollar/Swiss franc (USDCHF) US dollar/Japanese yen (USDJPY) and US dollar/Canadian dollar (USDCAD), according to the following reasons,
The most recommended beginner trading pair is the two foreign exchange currencies with the highest circulation rate starting from euro/dollar. The dollar and euro are very close to each other, and the degree of shaking is relatively high. They are greatly affected by the fundamentals.
In the foreign exchange market, the trading volume of Euro is second only to that of US dollar, so euro is the foreign exchange currency with the largest weight in the US dollar index, simple and most regular.
Investors can judge the trend of the euro with reference to the dollar index, the strong dollar represents the weak euro;
Conversely, a stronger euro means a weaker dollar.
In addition, among all kinds of foreign exchange, the pound/yen volatility can be said to be one of the biggest money pairs, and it is called the king of foreign exchange.
In foreign exchange trading, pound day is shaken, for beginners, may not be able to adapt to control, do not advocate the start.
The pound belongs to the high property money, the interest rate is high, while the yen has been almost zero interest rate, investors in the market can take advantage of the interest rate difference between the two countries to carry the trade, thus attracting more attention from investors.
As far as the Japanese currency is concerned, it is attributed to the hedge money silver.
Among the three safe-haven currencies, the Japanese currency is the most sought after by investors.
Both sterling and the yen are more likely to move in the opposite direction.
When the market risk-averse sentiment appeared, risk-averse money was sought after, high property money was suppressed.
On the contrary, when there is a risk preference in the market, the high property money will be sought after, while the low value silver will be suppressed, and then the GBP/JPY will be greatly shaken.
For investors who have some experience in foreign exchange trading, the amount of investors’ capital is sufficient, and they are also relatively invested.
Under the premise of not being afraid of danger, the British pound, the euro, the Swiss franc and other frontline money, absolutely fit the love of influence mentality.
On the contrary, if the investor is a more conservative, not willing to take too much risk, but also like to do long-term trading investors, high interest returns and some products, such as Australian, New York, Canadian dollar is more appropriate.
