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Do you want to learn how to identify the best Currency Pairs to bet on? In this article we will give you some tips to do it, but first, we will explain some basic concepts, important to know and understand before you start betting.
What are Currency Pairs?
Currencies are classified according to an international standard, so they are paired in pairs. Generally, the symbols of each currency are 3 letters.
The codes are composed of the first two letters defining the name of the country and the last letter the name of the currency. Therefore:
The US dollar is the USD
The British Pound is GBP
The Japanese Yen is JPY
Two codes make a currency pair and all currencies are quoted in pairs. The reason is that to express the value of one you need the other.
For example, in the euro and dollar, we will measure the value of the euro in dollars. This can be interpreted as the price of 1 euro in dollars.
The first currency in a currency pair is the base currency and the second currency is the quoted currency.
Example of Currency Pairs
Before investing in currencies, one must understand the exchange rate, and this can be found on the trading platforms, making the proper research. When investing in Forex what you are really doing is buying a currency and selling another in the same operation. Resuming, we speculate with the price of a currency against its pair. We always buy and sell in relation to the first currency of the quote.
MAKE THE MOST OF YOUR FOREX PREDICTIONS
Types of Currency Pairs
There are 3 types of C. Pairs: major or main, minor or cross and exotic currency pairs.
Major C. Pairs
Are those composed of one of the following currencies, paired with the US Dollar (USD), like:
British Pound (GBP) , Euro (EUR), Japanese Yen (JPY), Swiss franc (CHF), Australian Dollar (AUD), New Zealand Dollar (NZD), Canadian Dollar (CAD).
Therefore, the major pairs would be as follows:
One of the most appreciated currency pairs that can be found in the world of Forex trading is the USD/JPY, also known as “ninja”. This pair has stable trends over long periods of time.
Minor C. Pairs
Also called Cross Currency Pairs, are those pairs that do NOT include the USD but do include at least one of the other three major world currencies, i.e.: the British Pound, Euro, Japanese Yen, for example:
Exotic C. Pairs
An exotic currency can be anything not considered a major currency. For example, AFN (Afghanistan Afghani), MAD (Moroccan Dirham), QAR (Qatari Rial) and many others.
This type of currency does not have the strength of the main currencies and is very volatile, that is to say, it has very high risk, little liquidity, and is difficult to analyze and forecast. An example of these are:
Now that you know all the concepts about currency pairs, you’re ready to bet.
Betting with London Betting Shop will be even easier than direct trading. You only have to place a bet on the price direction of any currency pair options you will choose and your profit, or loss, will be determined by whether or not the market moves in the direction you choose.
The risk is only what you place as a stake and you don’t need to keep exchanging your money to make money.
Choose any pair you consider will go up or down and bet on Forex with London Betting Shop. If the results are on your side, you get returns immediately.