The essence of currency pairs

In order to earn income from currency trading, the possibilities of a pair of important Forex currencies are widely used, forming a unique and unique currency exchange rate for an existing period of time. A couple of important Forex currencies are considered in the market as an effective trading tool. The classical record of each pair of important Forex currencies is endowed with a specific currency code and is depicted as follows: the currency of the base entity / the currency of the non-main quotation entity. The base Forex currency officially occupies the place to the left of the official designation of the currency pair. In addition, this currency is purchased and sold for a quoted non-core currency. The quoted currency is located to the right of the main one and expresses the full value of the currency that is considered as the base.
Let's consider as a good example one of the paired currencies of the euro/American dollar. Let's say their ratio is 1.3336. The transcript explains that one euro can be purchased for $1.3336. The essence of currency pairs related to the base popular currencies.
Experienced traders use the concept of major currency pairs. Currencies known as basic "majors" are traditional world currencies. Which should include: euro, dollar, Swiss franc, British pound, Japanese yen. The base currencies form the most popular currency pairs in trade transactions: euro/dollar, pound/dollar, dollar/franc, dollar/yen. The following world currencies are next in importance: the Canadian dollar, the Australian dollar and the New Zealand dollar. The described world currencies form the following currency pairs: USD//CAD, AUD//USD and NZD//USD.From the described examples, it is clearly visible that in all pairs there is a United States dollar designated (USD)
Cross-rates of the main world currency pairs.
Considering the essence of currency pairs, it is necessary to introduce the concept of a cross-currency exchange rate. In fact, the cross-rate is an important trading tool without the presence of the United States dollar. According to statistics, the United States dollar participates in 90% of currency transactions, the EURO currency in 37%, the Japanese YEN appears in 20% of Forex transactions, and the POUND sterling in 17% of transactions. Transactions using the capabilities of the EUR//USD pair amount to twenty—eight percent, USD//JPY — 17% and GBP//USD - 14%.
A trader without proper experience often does not know which of the popular currency pairs to give preference to for future trading operations in the currency market. It is difficult to give any recommendations here, since the choice remains with the direct participant in Forex trading. However, it should be noted that the possibilities of obtaining financial income in the forex market depend on the correct choice of a currency pair.
Many experienced traders work with a single currency pair for a long period of time, improving their practical skills. The currency pair should not only be studied in depth from the technical side, but also from the perspective of responding to important economic news taking place in the global community. After the final choice of a currency pair, it is necessary to choose the optimal trading strategy, and often the choice of such tools is interrelated and considered simultaneously. https://mosbet.group/bd-en/