Chapter 2 Best Currency Pairs for Scalping
Without any doubt, the currency pair choice is separate and quite wide subject because every currency has its own "nature" and set of factors creating its dynamics. The choice of trading instrument is important not only for a scalping, however, in a scalping where there is, literally, a fight for each point of profit, and the sharp shift can lead to a loss, its importance comes to the forefront.
Generally speaking, it is desirable to trade the smallest-spread currencies that also have the lowest costs. More precisely, it is recommended that you use the most traded currencies as those have the highest liquidity in the market.
Scalping the EUR/USD, GBP/USD
Currency pairs of EUR/USD and GBP/USD enjoy the widest popularity at traders. It is explained by the high liquidity of these currencies and low spreads. EUR,GBP and USD represent the most widespread and strong world currencies that allow to use in trading various forex strategies: trend, flat, channel, net, scalping, martingale. Scalpers beginners usually choose these currency pairs. So-called market noise for currency pairs EUR/USD and GBP/USD averages 20-30 pips that allow to earn quite a good profit even in case of weak movements.
Scalping the USD/CAD, AUD/USD
Putting currency pairs USD/CAD and AUD/USD in one row won't be absolutely correct as USD/CAD approaches for the flat forex strategy and AUD/USD has pronounced trend nature. However, we mention them together in view of the fact that these currency pairs has the counter-trend fluctuations of quotations. Market noise on pairs USD/CAD, AUD/USD averages 20-40 pips.
Scalping the USD/CAD is recommended in the evening or night time. That is why this currency pair is often traded by professionals. Scalping forex brokers assume the low market volatility, which allows to avoid powerful quotations changes.
Report