Currency Trading
Forex
Forex is the global market for trading currencies like USD, EUR, and JPY. It operates 24/5 and is highly liquid. Prices are influenced by economic data, interest rates, and geopolitical events.
Pair Table
Top 20 Pairs by Change %
| Pair | Ticker | Price | Change % ▼ | Change $ | Open | High | Low | Prev Close |
|---|---|---|---|---|---|---|---|---|
| USD/CAD | USDCAD=X | $1.04 | +1.11% | +$0.02 | — | $1.04 | $1.04 | $1.03 |
| USD/CHF | USDCHF=X | $0.80 | +0.68% | +$0.01 | — | $0.80 | $0.80 | $0.79 |
| AUD/USD | AUDUSD=X | $0.67 | +0.33% | $0.00 | — | $0.67 | $0.67 | $0.67 |
| USD/JPY | USDJPY=X | $1.05 | +0.02% | +$0.00 | — | $1.05 | $1.05 | $1.05 |
| NZD/USD | NZDUSD=X | $0.58 | -0.14% | $0.00 | — | $0.58 | $0.57 | $0.58 |
| GBP/JPY | GBPJPY=X | $1.41 | -0.19% | $0.00 | — | $1.41 | $1.41 | $1.41 |
| GBP/USD | GBPUSD=X | $1.34 | -0.20% | $0.00 | — | $1.35 | $1.34 | $1.35 |
| EUR/GBP | EURGBP=X | $1.09 | -0.41% | $0.00 | — | $1.09 | $1.08 | $1.09 |
| EUR/USD | EURUSD=X | $1.17 | -0.60% | $0.01 | — | $1.17 | $1.17 | $1.18 |
| EUR/JPY | EURJPY=X | $1.23 | -0.61% | $0.01 | — | $1.23 | $1.22 | $1.23 |
Key metrics
- Spread (pips)Tighter spreads reduce trading costs; varies by pair/liquidity.
- LeverageAmplifies gains and losses; manage risk carefully.
- Swap/rolloverOvernight financing costs/credits from rate differentials.
Fees & costs
- SpreadTypical: 0.1–2.0 pipsMajors are cheapest; exotics are wider.
- FinancingTypical: VariesOvernight costs/credits for leveraged positions.
Risks
- LeverageHighSmall moves with leverage can wipe capital quickly.
- Event riskMediumData releases cause gaps and slippage.
How to get exposure
- Spot FXTrade pairs via regulated brokers.
- Currency ETFsSimpler wrappers for long‑only views.UUP (USD)
Forex Tracker
Common mistakes and fixes
- Over-leveraging positions
- Trading news without a plan and risk limits
- No stop discipline; averaging losers
Fix: set target weights, automate contributions, and rebalance on schedule.
Top instruments to use
EUR/USDUSD/JPYAUD/USD
How to pick
- Liquid pairs (majors)
- Tight spreads
- Transparent costs/regulation
Forex playbook
Macro pairs
- Focus on liquid majors (EUR/USD, USD/JPY)
- Align with rate differentials
- Respect event risk (CPI, NFP, central banks)
Risk control
- Tight position sizing and stops
- Beware overnight gaps and carry
- Use risk per trade < 1%
Systematic edges
- Trend/momentum on higher timeframes
- Mean-revert around ranges
- Avoid overfitting and news chasing
What to watch
Rate differentialsCentral banksRisk-on/offDollar index
Risk rules
- Define target allocation before buying
- Position size based on risk, not conviction
- Rebalance on schedule or bands
- Prefer low-cost, diversified vehicles for core
Execution tips
- Use limit orders for thin products
- Mind bid/ask spreads and liquidity windows
- Automate contributions where possible