EUR/USD - characteristics and features of the currency pair Euro US Dollar

The first acquaintance with the market, as a rule, begins with the EUR/USD (Euro-Dollar) currency pair. It is the most important pair in terms of daily trading volume, which accounts for about 29% of the total currency trading in the world.

What are currency pairs?

Currency pairs are the main trading instruments that represent the ratio of two national currencies in the market.

As soon as a trader comes to the foreign exchange market, everything seems complicated and unknown to him. That is why beginners tend to start their trading journey with something familiar. So it turns out that the main trading instrument they have are currency pairs, among which the most popular are, for example, GBP/USD or EUR/USD. At the same time, young traders can easily experiment with other currencies - what kind of pairs they are and how to work with them, we will now tell you.

All currency pairs with which a trader can start working on the market are initially divided into three main groups:

Group	Trading Instruments	Major pairs are those combinations of currencies that are most often traded in the market. Generally, the currencies that make up the major trading pairs are considered the most resilient to market fluctuations and generally the most stable.	EUR/USD; GBP/USD; USD/JPY; USD/CHF.
Description	Cross-courses	Such pairs in which the US dollar is not present in any combination. Although in terms of trading activity they are inferior to the main ones and those that include the dollar, trading with these instruments can bring good profits. For example, pairs that include the Japanese yen have performed well in trend trading.	AUD/CAD; CAD/JPY; CHF/JPY; EUR/AUD.
An example of a pair	Exotic currency pairs	Exotic currencies are currencies of countries that have little or no effect on the state of the market. Typically, these pairs have low liquidity and high spreads. They are used mainly by representatives of the countries to which they belong.	EUR/DDK; USD/MXN; USD/RUB.

What currency pairs are best for a beginner to trade? Experts advise to start working with major currencies and such currency combinations, in a pair of which the dollar is worth.

Exchange rates

The exchange rate is a kind of ratio between different monetary units of the countries of the world. In simple terms, this is the value of the currency of one state, expressed in terms of the currency of another. Such a ratio is simply necessary, since thanks to this capital can move freely, the world economy is a chain of economies of each country, interconnected.

The exchange rate is needed to establish the exact proportionality of the purchasing power of the currency in the turnover and exchange of services, the movement of capital, which is expressed in the form of loans, as well as investments. It is also necessary to be able to compare prices for goods on the world market, to revalue the accounts of banks, governments and individuals in the form of foreign currency.

There are two main modes of exchange rates:

Floating	Fixed
The exchange rate is set based on supply and demand in the foreign exchange market.	The exchange rate is set as a fixed value for a certain period of time.

The choice of the exchange rate regime is also influenced by the objectives of economic policy. Most countries use float mode as it works as an automatic stabilizer. In the event of unfavorable events, its change smoothes the effects on the economy.

Trading sessions

A trading session is a period of time during which foreign exchange transactions are performed with the participation of trading platforms located in the same geographic area.

There are many time zones on the planet, and when in one country banks and traders finish trading, in another country on the other side of the world at the same time the trading session is just beginning.

It is for this reason that any trader has the opportunity to work around the clock and continuously in the Forex market. Exceptions are weekends Saturday and Sunday and some public holidays.

World session types:

Session	Description	Traded Currency Pairs
Asian	The beginning of trading is traditionally considered the opening of the Asian session. At this time, traders pay attention to Asian currencies. Since most Asian countries are actively exporting goods, in this session companies adjust prices for the national currency at their discretion.	USD/JPY; EUR/JPY.
European	It is characterized by active trading in major currency pairs. At this time, the work of the largest financial centers in Europe is activated. Due to the fact that most of the monetary resources are concentrated in the European area, changes in exchange rates can be very noticeable.	EUR/USD; GBP/USD.
American	You can often observe how in the second half of the European trading session, active trading begins on the market. The volatility of currency pairs is increasing, there is a feeling that market participants have a second wind, and they took up trading with renewed vigor. In principle, this is how it happens - the traders return from their lunch break and get to work. But to a greater extent, the increase in activity is due to the fact that it was at this time that the American session began its work.	EUR/USD; USD/CAD; USD/JPY.
Pacific	The most calm and calm of all the previously quoted sessions of the international foreign exchange market. It opens at midnight, so only weak fluctuations in the prices of trading instruments can be observed in the market, complete silence ensues and the market practically freezes.	AUD/USD; NZD/USD; AUD/JPY.

Trading timeframes and their relationship with strategies

Timeframe - the time interval of the chart that is used to display quotes. There are many types of timeframes, I will list only a few of them: tick, М1 (one-minute); M5 (five minutes); M15 (fifteen minutes); H1 (hourly); D (one day); MN (monthly).

Many novice traders often ask themselves the question: "What timeframe is better to choose for trading?" There is no definite answer to this question, everything is selected individually and depends on many factors:

from the amount of time that you are willing to spend on the market;
from your preferences for the style of trading;
from the amount of funds in your account (trading on large timeframes requires a much larger amount on your account).

A trading strategy is a set of rules that establish all the actions of a trader in the process of trading on financial markets. A trading strategy is also called a system, an algorithm, a plan - but the essence remains the same. The trading system must establish under which variants of the course of events what actions to take. And if, for example, a trader opens or closes a position, then he must have a clear answer to the question - why did he do it.

Types of strategies and their influence on the choice of the timeframe:

Strategy	Scalping and day trading	Medium-term trading	Long-term trading
Timeframes	from M5 to M15	from D to MN	from MN
Description	You can also use the H1 and D timeframes for market analysis. In this trading style, all positions are opened and closed during the day. There is no transfer of positions to the next day.	A calmer type of trading. Sometimes you are in a deal for up to several weeks. Advantages: you do not need to constantly monitor the market, you can engage in some other activity.	In fact, this method is called investing, you can open a deal and forget about it. Among the disadvantages: a large trading account size, more than in the above trading styles. You have to expect the result for a long time, which not everyone will like. Advantages: does not require constant monitoring of open positions.

Therefore, we can conclude that there is no exact answer to the question "which timeframe is better?", It all depends on the preferences of the trader.

Features of the EURUSD currency pair

Euro / dollar is the most popular pair in the forex market, this popularity is based on several reasons.

Firstly, both currencies have the maximum liquidity and are in stable demand, and secondly, it is for this instrument that the lowest spreads are present, and it is for this pair that there are a lot of analytical materials and forecasts, which makes it possible to make trading on it more successful.

Each trading pair is most active at a specific time. Thus, EUR / USD is most active during the European and American sessions and is inactive during the Asian session. It is not recommended to trade this currency pair during the Asian session due to the large number of false signals and flat movement.

Due to the dynamism, you can get the greatest profit, in one day the movement can be from 100 to 500 points, which rarely happens with other currencies.

The dollar exchange rate is influenced by economic events in the country (unemployment rate, real estate prices, changes in GDP, etc.), the actions of the US financial structures and statements by its political leaders.

With the euro, the situation is much more complicated, any news about events in one of the countries included in the Eurozone already causes a change in the exchange rate of this currency. This is precisely where the difficulty of trading this currency pair lies.

A great help in trading is the presence of a mass of forecasts regarding the further advance of the trend, combining them with your own conclusions, you can quite accurately find the points of entry into the market.

How to start trading EURUSD in Nigeria

There are several different approaches to trading, and each trader chooses his own style. Some traders use only one proven trading method, while others combine several at once. There are three main ways to trade the EUR / USD pair (these methods are also suitable for all major currency pairs):

Trading on the fund	Trade using technical analysis	Trade by indicators
Deals are concluded based on an analysis of fundamental factors. It can be both short-term trading on the news, and a long-term position in anticipation of changes in interest rates.	Trades are made by analyzing the chart of a currency pair. Here you can use both classical technical analysis and various author's approaches.	The signals of the selected indicators serve as the basis for making deals. It can be one complex indicator or a trading system of several indicators. Automatic trading systems - Expert Advisors are created based on indicator signals.

Many traders prefer to trade short-term on strong news, as well as technical analysis, while waiting for the formation of various trading patterns.

At the same time, traders are not limited to trading only on the EUR / USD pair, there are many other interesting currency pairs and financial instruments.

The trader can only choose a trading platform and start earning. Currently, this is the most popular way to generate passive income, and sometimes traders convert trading into active income. After all, the investor gets free access to the site, around the clock, from anywhere in the world.

To become a successful trader, there are a few simple tips to follow:

Be serious about choosing a trading platform. This will contribute to an excellent successful long-term income generation, as well as save you from fraudsters on the Internet.
Get acquainted with all the factors influencing the price fluctuation of the selected asset. This is essentially the most important thing a successful trader should know.
Go to the market fully prepared, take your time, and work at your own pace.
Clearly set your goals and go towards them. If a trader finds an error in his trading, then he can go back a step and correct his strategy.

If you follow these tips, then trading will undoubtedly be successful and bring a lot of income.