Your choice of currency pairs

[shadowninja]

I noticed different people trade different pairs.

Why do you trade the ones that you trade? What characteristics attract you to them?

 

[jiggly]

>volatility,
>general market/price characteristics
>general correlations, best not to trade too many which are highly correlated as you are essentially increasing your initial position, if opening new trades.
>risk and financial circumstances, towards maybe a portfolio of holdings or generally free capital,
>time available to devote to ones trading activity
>technical setups
>some might but i don't, fundamental situations,
>interest yielding circumstances,

there are more which others may be inclined to share but i think what i have mentioned is generic and is applicable to me.

 

[timm]

I don't trade pairs; I trade currencies.

The currencies I trade are NZD, AUD, CAD, USD, GBP, EUR, CHF, JPY. I choose these currencies because of their liquidity and because I can pair any two of these to make a trade when the opportunity arises.

JPY gives the best opportunities because of it's negative correlation to the high yield currencies.

 

[atomm]

I don't trade pairs; I trade currencies.

It looks different from normal practice in forex trading, in which we just choose a currency pair and trade it. Could you shed some light on it?
Do you trade through a normal forex broker?

Thanks.

 

[nine]

I am totally impressed by the definition of NZD as liquid.

 

[timm]

It looks different from normal practice in forex trading, in which we just choose a currency pair and trade it. Could you shed some light on it?
Do you trade through a normal forex broker?

Thanks.

I don't want to hijack this thread discussing my crazy schemes. I'll probably do a journal soon. In a nutshell, I chart currency indices and look for simultaneous long and short signals on two different currencies.

You just need a broker who offers lots of crosses. I'm currently testing small size with CMC.

 

[Desny]

It would disagree that JPY always has a negative correlation to high yield currrencies. On any day it can depend upon data releases. It can depend on insitutional strategy which doesn't buy or sell a particular currency pair. They buy and sell individual currencies, and those positions move the other currency pairs. For example, if the chart for +EUR-JPY wasn't favourable to a profitable trade, what other currency pairs would you trade in order to 'buy' EUR' and 'sell' JPY? In other words the correlation is not always obvious. A successful intrabank trader gives the answer.

 

[jacinto]

It would disagree that JPY always has a negative correlation to high yield currrencies. On any day it can depend upon data releases. It can depend on insitutional strategy which doesn't buy or sell a particular currency pair. They buy and sell individual currencies, and those positions move the other currency pairs. For example, if the chart for +EUR-JPY wasn't favourable to a profitable trade, what other currency pairs would you trade in order to 'buy' EUR' and 'sell' JPY? In other words the correlation is not always obvious. Listen A successful intrabank trader gives the answer.

desney,

i will ask you to read the site guidelines. you are borderline to what is defined as spam advertisements.

thank you

 

[Desny]

The answer to my question is: +USD -JPY and +EUR -USD (+= 'buy', - = 'sell') In other words by trading each side of the cross currency, you buy USD and sell USD at the same time and so they cancel each other out. AND if you sell JPY and buy EUR you will in effect trading the currency pair +EUR-JPY. Now if you notice a sudden spike in a currency pair when there is no news moving the markets, then a big move that seems to break the rules of correalated currencies can be understood by this strategy used by institutional traders. Because even though there may be no currency news, there can be global news and political events that move the markets behind the scenes. If you understand this, then you will understand that there is no randomness in the FOREX market as might first appear.