Choosing a binary options asset is difficult. New traders have little asset experience, making asset selection more challenging.
FX has the least risk among commodities, forex, indices, and equities. This currency pair trading should be your pick whether you’re an experienced or beginning trader.
Low collateral reduces currency market volatility. Also, forex trading promises big rewards.
11 or more currency pairs are available for binary options trading. GBP/USD, EUR/USD, AUR/USD, USD/JPY, USD/CHF, EUR/GBP, USD/CAD, AUD/JPY, GBP/JPY, EUR/JPY, USD/MNX.
EUR/USD is a powerful currency pair. Profit from trading this pair.
When does EUR/USD trade? How do you trade this currency pair? This guide has answers.
What’s Forex trading?
You must know a few forex basics before trading.
First currency is base currency, second is quote currency in a currency pair. In EUR/USD, EUR is the basis and USD is the quotation.
The currency pairs trading chart shows base currency vs quote currency.
The first currency pair is worth one. If EUR/USD is 1.11, there are 1.11 US dollars per euro.
A worldwide network of banks operates currency pairings, allowing 24 hour trading. Forex trading comprises three markets: spot, futures, and forward.
Currency price movements are measured in pips. A pip signifies percentage.
TradingView’s EURUSD chart
Why trade EUR/USD binaries?
EUR/USD is the most traded currency pair and one of “The Major” group of prominent currency pairs.
The EUR/USD system has a consistent trading time period. This currency pair has strong liquidity because it’s available all day. Liquidity improves price.
Use High/Low or Touch/No Touch binary options to trade EUR/USD. You may trade this currency pair with IQ Option, RaceOption, or Quotex for greater returns.
Why avoid EUR/USD?
This trading pair has constraints, like other assets. Some examples:
Because it’s most traded, EUR/USD is volatile. Volatility may make a successful transaction lose. Even if you understand the currency market, it’s hard to foresee EUR/movements. USD’s
If you trade on margin for bigger gains, be prepared to lose.
EUR/USD isn’t trending.
To profit, trade the strongest currency pair at the proper moment.
Forex Europe (07.00-16.30 UTC)
Before 10:00UTC, Asian traders set profit and loss at the end of a trade, affecting currency pair trading. Before the American market opens, the price drops.
Session Europe-America (13.30-16.30 UTC)
US currency news is released at this hour. This can weaken or strengthen the market. American traders make 60%-70% of overall commerce.
USA (13.30-20.00 UTC)
During this time, the dollar strengthens while the Euro weakens.
Europe (20.00-07.00 UTC)
This reduces EUR turnover. Traders wait for Europe’s market to reopen to buy again.
Once you understand how EUR/USD works, you can trade it. 5-minute, 30-minute, weekly, or all-day trading are options.
You can trade forex all day, but it might be risky. So, wait for EUR/USD to become active before trading.
If you pick the incorrect moment, even a successful transaction might lose. 13:00-16:00 GMT is the best time to trade EUR/USD. London and New York markets are open.
Narrow pattern ranges might help you prevent losses. When a currency pair drops or climbs then stops, a tight price range is produced. Narrow price ranges reduce volatility.
European and US market news
To understand the EUR/USD market, observe news trends. Financial news helps you decide if you should trade a currency pair.
Following news trends can help you track the currency pair. Know whether a pair is volatile.
While EUR/USD is a solid combination, there are certain points to consider. EUR/USD has restrictions and can generate large losses.
To make a profitable trade, you must watch the financial news, choose the right moment, and establish a good plan.
Even if you’re new to trading, understanding the EUR/USD pair and selecting a reliable broker may boost your profits.