If you have considered trading in the past, but did not proceed in the options, stock or commodities market, be prepared to be amazed at what forex has to offer.
When trading stocks you will quickly see that there are thousands of company shares that can be bought or sold on the stock market. Once you have come up with a trading plan, it can present some amount of difficulty screening through the many companies that offer stocks and finding some that work with your trading system or strategy. Look trading global stocks though indices or by spread betting can make matters simpler, but this causes you to lose out on the potential of making larger gains as each index serves to average the price moves based on the constituted elements of that particular market.
Futures and commodities also present similar complications as there are multiple market sectors and component parts this is exasperated by the need to choose dates of expiration and analyze the various choices that are available. Options are probably the most complex as they offer a range of choices for even financial securities that are simple, coupled with the fact that there are many Greek letters which make analyzing them much more difficult.
At first sight, forex would seem to hold similar difficulty, given the fact that there are multiple currencies and countries across the world. In forex trading you choose to trade currencies this involves trading different pairs each currieries value is relative to the other. If you work out the number of permutation that you have for any two currencies, you will see that there is a large amount.
In reality, most traders keep their lives far simpler than that by sticking to trading the four major currencies. Based on analysis conducted by LTG GoldRock educational and trading services these pairs are responsible for over half of the forex trading that takes place and at the very top is the EUR/USD AKA the euro v. US dollar this pair alone accounts for 27% of the volume traded in the forex market. The next most heavily traded pair is the USD/JPY (US dollar v. Japanese yen) which accounts for 13% of traded volume. The (pounds sterling v. US dollar), GBP/USD comes un at 12 % and the US dollar with the Swiss franc USD/CHF comes in at the fourth most traded currency pair.
Other majors that are traded on the currency market are the AUD/USD Australian dollar v. US dollar, the USD/CAD, US dollar v. Canadian dollar and the NZDUSD, New Zealand dollar v. The US dollar. These pairs are coined commodity currencies / pairs because the countries are wealthy in natural resources.
Most of the forex trading centers that offer these pairs to trade, for extended purposes also offer combinations of the same pairs in 11 other ways, instead of using all possible combinations, this makes forex much simpler to trade when compared to stocks options and commodities etc.
If you decide to choose the top 18 currencies, there will be some amount of duplication in your research, an example of this is the Australian dollar v. the Canadian dollar AUD/CAD, if it is believed that the Australian Central Bank is going to prop up its currency, you will have the choice of purchasing the AUD/CAD or the AUD/USD as both currency pairs will allow you to profit form trading. All things being equal most trading boils down to carrying out analysis of which of the 8 pairs are likely to go up or down that is which of the eight pairs are actually trending.
LTG GoldRock offers several currency pairs including the most traded pairs on the exchange. Low pip spreads and fast executions of trades plus excellent liquidity in the market place are just a few of the benefits offered by forex trading with the LTG GoldRock preferred Brokerage Service.