Interestingly enough, out of all the cryptocurrencies that are available for trading on the market, Bitcoin has perhaps evolved the most, and is perhaps one of the most popular forex trading investments available.
There has been a recent trend in the past few years of forex traders moving away from traditional trading with brokers and towards independently trading at forex proprietary shops. This basically means that they can put some of their own money into a deposit, and then get help with funding from the broker for some more deposit, but at the end of a certain period they get to keep 50% of the profits, with the other 50% going to the broker.
It goes without saying that there are quite a considerable number of currencies that forex traders can choose when trading. However, the vast majority of forex currency traders tend to concentrate on common pairs, such as the EUR/USD, GBP/USD, or USD/HKD etc. But there are certain types of currency pairs.
Here we provide a brief overview of some of the characteristics of four of the most common currency pair types, and why they are important for trading.
It goes without saying that in forex trading, when doing technical analysis, the price of a currency pair can move anywhere between zero and to an unspecified upper limit on the charts. For example, based on today’s prices in GBP/USD at around 1.298, a 1.37 would be regarded as a high price. However, how about 1.40, or 1.45? While these numbers may seem unrealistic (according to history), and they are all ‘high’ by definition, then we would have some degree of difficulty in placing a stop loss or assign a certain profit on the charts. There needs to be a more realistic and practical range that can be classed as truly high.