Top 5 Factors for Choosing Which Forex Pair to Trade

Posted in Trading Knowledge
5 minute read
Which-Forex-Pair-to-Trade

With endless individual currency pairs available to trade, it can feel overwhelming to decide where to place a position. In this article, we discuss five key factors to help you better pre-determine where your focus could be best spent.

Choosing the right currency pair for your trading

Seven-Majors-v3
An image showing the different combinations of the seven major currencies.

Top 5 Factors for Choosing Which Forex Pair to Trade

1. How volatility affects the forex market

2. Forex backtesting and historical performance

3. Understanding different trading sessions

Trading-Sessions-v2
An image to show the four major trading sessions: Sydney, Tokyo, London and New York.

4. Fundamental events and news releases

NFP-Volatility-Full-v1
*Market volatility determined by daily candle pip range of EUR/USD on days that include NFP (red) vs. days that do not (yellow). TradingView 03/05/2021 - 24/05/23

5. Spread and transaction costs

Frequently Asked Questions (FAQ)

How do I choose which currency pair to trade?