Which Currency Pairs are Worth Day Trading

When trading there are many factors to look at to decide which would be the best trades can happen. The spread is one of the first factors to look at, some pairs are better traded with than others depending on the spread. All trading in the forex market is done with Currency Pairs. And spreads are much harder to overcome in short term trading. Keep in mind wider spreads are not a bad signs, it would depend on the lower alternative. 

The spread needs to be converted to a percentage of the daily range called the ‘base line’, with this you can compare spreads versus maximum pip potential for day trade, and you can differentiate between the results of one pair and another. Some currencies will offer better value when combined with the spread and daily pip potential. 

Once you have placed the spread with the daily average move, you can have a much clearer idea to help you decide on which trading pairs are best to use. 

Most day traders focus on pairs with the lowest spreads, like the EUR/USD and GBP/USD which have the best ratio from other pairs, also the EUR/JPY rank high among other pairs. 

Other pairs can range much lower for day traders, like the USD/CAD, which also has a four pip spread, but in some cases can be the worst to day trade with, depending on the spread and the daily average range. 

Some pairs are better suited for short term moves while others are suited for long term moves, where the spread becomes less significant. 

Over all you need to analyze all your factors, but by not doing that, and taking advantage of your most valuable currencies for day trading – or any other strategy – you are actively missing out on opportunities