Cross pairs - a great choice for profitable trading!
In the Forex market, any currency pair without the US dollar present in it is considered a cross. Crosses are the most numerous group of trading instruments at Forex.ee and many of our clients implement these pairs in their trading strategies.
Crosses are conventionally divided into major and minor. Crosses of the major group are more volatile and liquid. Highest liquidity is provided for the euro cross-rates, followed by the Swiss franc and yen. For instance, you can trade the following liquid cross currency pairs at Forex.ee: EUR/GBP; EUR/JPY; EUR/CHF; GBP/EUR.
The list of minor crosses is much more extensive. Our company provides options for trading such minor crosses as CAD/CHF; AUD/CHF; CAD/JPY; GBP/CAD, and others. It is recommended to use long-term strategies when trading minor crosses, as usually the moves of these pairs tend to follow the trend longer, although they are less volatile and liquid in comparison with the major crosses.
The advantages of trading crosses:
• The major crosses are no less volatile than the dollar pairs, and sometimes their volatility is superior to the regular pairs with dollar. The profit level from trading crosses may be equal or higher than the profit from regular majors in the same period of time.
• Information from three price charts can be used for the dynamics analysis of cross pairs - the chart of the cross-pair itself plus two charts for the currencies the cross consists of priced against the US dollar. There by, the probability of making the right decision increases for a trader. Professionals use "tips" from the dollar charts to foresee the movements coming on the charts of the crosses.
At Forex.ee, you can expect to have no trading restrictions for the crosses using such tactics as hedging, Expert Advisors, scalping, high-frequency trading. For the majority of crosses, the spread size on ECN and STP accounts is among the tightest on the market: from 0.3 points.
With all the advantages of crosses trading, you should remember that each cross-currency pair has its own peculiarities, characteristics, and the interest rate differences. In addition, the crosses are influenced by political and economic events.
Our analytical team has provided some examples of how specifics of the crosses can affect the trading:
Example 1: Negative news from Great Britain can lead to a significant reduction of GBP/JPY pair, while NZD/JPY and EUR/JPY will not be affected. You can track important financial news using the economic calendar on our website.
Example 2: The EUR/GBP cross has insignificant volatility. With this, the EUR/GBP pair is unique because of the high value of one pip. Hence, you should take into account that the smallest price change can significantly increase profits as well as lead to considerable losses. Forex.ee trading conditions (Leverage of up to 1:500; minimum lot of 0.01) help you adhere to the right principles of risk management in the trading process.
Example 3: EUR/JPY is one of the most popular cross pairs among Forex.ee traders. It is interconnected with dollar pairs USD/JPY and EUR/USD. If you decide to work with EUR/JPY, then follow the news and analyze the charts including two other USD pairs. Data on interest rates can be of help and the difference between the growth of EUR and JPY is also useful.
Please find a detailed outline of our trading conditions for all instruments of the Crosses group on our website in Trading conditions Section.
Trading crosses allows you to take advantage of moments when it is difficult to trade the major currency pairs. Use the whole range of currency pairs on theForex.ee MT4 trading platform!
In the Forex market, any currency pair without the US dollar present in it is considered a cross. Crosses are the most numerous group of trading instruments at Forex.ee and many of our clients implement these pairs in their trading strategies.
Crosses are conventionally divided into major and minor. Crosses of the major group are more volatile and liquid. Highest liquidity is provided for the euro cross-rates, followed by the Swiss franc and yen. For instance, you can trade the following liquid cross currency pairs at Forex.ee: EUR/GBP; EUR/JPY; EUR/CHF; GBP/EUR.
The list of minor crosses is much more extensive. Our company provides options for trading such minor crosses as CAD/CHF; AUD/CHF; CAD/JPY; GBP/CAD, and others. It is recommended to use long-term strategies when trading minor crosses, as usually the moves of these pairs tend to follow the trend longer, although they are less volatile and liquid in comparison with the major crosses.
The advantages of trading crosses:
• The major crosses are no less volatile than the dollar pairs, and sometimes their volatility is superior to the regular pairs with dollar. The profit level from trading crosses may be equal or higher than the profit from regular majors in the same period of time.
• Information from three price charts can be used for the dynamics analysis of cross pairs - the chart of the cross-pair itself plus two charts for the currencies the cross consists of priced against the US dollar. There by, the probability of making the right decision increases for a trader. Professionals use "tips" from the dollar charts to foresee the movements coming on the charts of the crosses.
At Forex.ee, you can expect to have no trading restrictions for the crosses using such tactics as hedging, Expert Advisors, scalping, high-frequency trading. For the majority of crosses, the spread size on ECN and STP accounts is among the tightest on the market: from 0.3 points.
With all the advantages of crosses trading, you should remember that each cross-currency pair has its own peculiarities, characteristics, and the interest rate differences. In addition, the crosses are influenced by political and economic events.
Our analytical team has provided some examples of how specifics of the crosses can affect the trading:
Example 1: Negative news from Great Britain can lead to a significant reduction of GBP/JPY pair, while NZD/JPY and EUR/JPY will not be affected. You can track important financial news using the economic calendar on our website.
Example 2: The EUR/GBP cross has insignificant volatility. With this, the EUR/GBP pair is unique because of the high value of one pip. Hence, you should take into account that the smallest price change can significantly increase profits as well as lead to considerable losses. Forex.ee trading conditions (Leverage of up to 1:500; minimum lot of 0.01) help you adhere to the right principles of risk management in the trading process.
Example 3: EUR/JPY is one of the most popular cross pairs among Forex.ee traders. It is interconnected with dollar pairs USD/JPY and EUR/USD. If you decide to work with EUR/JPY, then follow the news and analyze the charts including two other USD pairs. Data on interest rates can be of help and the difference between the growth of EUR and JPY is also useful.
Please find a detailed outline of our trading conditions for all instruments of the Crosses group on our website in Trading conditions Section.
Trading crosses allows you to take advantage of moments when it is difficult to trade the major currency pairs. Use the whole range of currency pairs on theForex.ee MT4 trading platform!