When trading binary options, a lot of traders like to choose currency pairs as their assets. The currency market is a vibrant one, with loads of factors influencing it. As a matter of fact, they are probably the type of assets that is most heavily influenced by everyday global events. However, not all currency pairs can be treated equally, so we are here to point you in the right direction when it comes to currency majors. In this article, we will go through their basic features and give you a few tips on how to approach them. Give us just a few minutes of your time and we will show you how to up your trading game. Let’s go!
Currency Majors | Which are they?
Currency majors are essentially the four most popular and most heavily traded currency pairs on the market. These include: EUR/USD, USD/CHF, USD/JPY and GBP/USD. Some people add two more pairs to that group – USD/CAD and USD/AUD – but apart from that, these are all the pairs you need to look for if you want to trade currency majors. As you can see, unlike Currency Crosses, the thing all these pairs have in common is the USD, and the reason for that is because the USD is the global reserve currency, the basis of how the current financial system works. It is therefore logical that this is the most traded currency in the world. But what do you need to know about trading binary options with these pairs? Read on and find out!
Currency Majors | Global stage
Usually, currency majors behave as an exact opposite to currency crosses in that if one type of pairs is consolidating, the other will be moving. Also, as we already mentioned at the beginning of the article, global Market Events are what influences these currencies the most, so keep track of major central banks. Institutions like the Federal Reserve, European Central Bank, Bank of England and Bank of Japan all publish regular reports that can tell you a lot about their future moves. Given that these banks control all currencies that form currencies majors, by keeping track of these reports you always have loads of data at your disposal. This information is often vital in making the right business decision. Obviously, do not forget about other important events in the world – a thing a global leader says, for example, can have serious consequences on all these pairs.
Currency Majors | Conclusion
To summarize, currency majors are not that numerous, and their main feature is the fact that they are all tied to the US dollar. These are the most traded currency pairs in the world, so they can be affected by numerous events that take place on the global stage. However, the reports of central banks of the world’s most powerful economies is what you should be keeping track of, as they can give you the best idea of what to expect in the future. For educational materials on trading binary options, read our other articles on this part of our website.