Currency pair options are a hotbed for scalping activity, often referred to as the “hot potato.”Scalping is a form of chart pattern execution in which an investor looks for a sequence of chart patterns that will yield greater profits.
If you are interested to know these top currency pairs, read this post to get it. Here you can get the features of the best currency pairs for scalping.
Let’s find out the best currency pairs for scalping: Major pairs of AUD/USD, GBP/USD, and EUR/USD are the best currency pairs for scalping. Whereas AUD/USD is the best minor pair for scalping.
Scalping is a way to continuously move your trades in and out of the market to make small gains. Forex platforms are abandoned with a lot of currency pairs. So, traders are always trying to figure out the best currency for scalping.
Scroll down to get the details of the list of best currency pairs…
Best Currency Pairs For Scalping Forex
The best currency pairs for scalping are those that aren’t prone to very sharp swings, on the other side if they are, their movements aren’t more frequent. In this regard, the group of major pairs highlighted here is the best for scalping. The EURUSD pair is the most liquid and less volatile among them.
1. Best Major Currency Pairs
This category covers currency pairs like GBPUSD, EURUSD, and USDCHF. This group also includes some other pairs of the world’s most popular currencies. Though JPY pairs can be included in this category, they behave very differently. So we know its detail under the best carry pairs.
What are the features of major currency pairs for forex scalping?
- They are more liquid.
- They are less reactive towards market price shocks.
- The movement of 100pips in AUDJPY affects the EURUSD through thirty levels.
- These are the most trading big pairs all over the world.
- As they keep moving, they are considered the powerhouses of forex platforms.
- Major pairs are best for the scalpers of trade ranges. Because they like to get a safe income from a less moving market price.
2. Best Carry Pairs For Scalping
Carry pairs are liquid. EURJPY and USDJPY are popular currency pairs throughout the world. So their trading volume is fast. Since many global players employ the JPY to lend and trade in a range of volatile commodities. They are also quite volatile.
So when there is a market shock, these pairs respond in an unnatural way, making trading decisions difficult to understand. Especially in the short timelines preferred by scalpers.
In the forex market, the carry trade is the most common trading strategy. Since the mortgage rate spreads on such currency pairings are pretty wide. Therefore, one of the most favored carry trades is buying currency pairs such as the New Zealand dollar/Japanese yen and Australian dollar/Japanese yen.
3. Best Exotic Currencies
Exotic is a concept of trading in the options market. Here we use this term to indicate the fewer forex pairings that aren’t fit for scalping. The exotic group contains highly volatile pairs as NOK USD, BRLUSD, RUBUSD, and several other pairs with less popularity.
Scalping is not appropriate for this group because price gaps are often unexpected. So, it is hard to use money management plans in short time frames. New players, should ignore them for becoming scalped. While they are busy scalping the market.
The Best Scalping Pairs In 2022
Scalpers trade the most popular currency pairs, with EUR/USD, USD/CHF, GBP/USD, and USD/JPY. As they are the well-traded and most popular pairs. In fact, scalpers prefer these pairs for their slow market movements, highest rate of trading, and stability. By using them, scalpers can get regular and modest income.
Below is a brief introduction to these best currency pairs for scalping:
1. USD EUR
In terms of liquidity, the USD/EUR is the most challenging pair, making up a majority of price movements. This currency pair has an inverse relation with the USD/CHF. But it has a strong relationship with the US dollar is the most frequently traded currency in the world. The next popular currency is the Euro.
The USD and the Japanese Yen are the second most currency pairs to trade JPY. This pair is a little more touchy than the others because it tries to highlight the political view between the two superpowers at any point in time. The “gopher” is the name given to this pair. The USD/CHF and USD/CAD pairs have a strong association with this pair.
3. USD CAD
The Canadian Dollar (CAD) is one of the favorite currencies of the world’s biggest economy. Trading the “loonie” is a typical term for this trading combination. The GBP/USD, AUD/USD, and EUR/USD all have a weak association with this pair.
4. USD GBP
The British Pound (GBP) and the (USD) are the next most widely traded pairings linked from all over the WORLD. The “cable” is a word used to denote this pair. The EUR/USD has a high association with this pair, whereas the USD/CHF has a weak association.
5. CHF USD
The U.S. dollar to Swiss franc will be the next pair on the list (CHF). The “swiss” is the label given to this currency pair. The EUR/USD and GBP/USD pairs have a negative relation with this pair. In potentially troubling times, the Swiss franc has always been regarded as a safe harbor for trading.
6. USD AUD
The Australian Dollar (AUS) and the US Dollar (USD) are the last most popular trading pairs. The “Aussie” is the name given to this currency pair. The USD/CAD, USD/CHF, and USD/JPY all have a negative relation with this pair.
Frequently Asked Questions
What is the best market for scalping?
Markets with the highest volatility and lowest trading movements are great for scalping. The best markets of the INDICES are generating 1-5 level profits. For example, the Indices of E-Mini Nasdaq, E-Mini Dow, E-Mini SP, E-Mini Russell, are the most popular scalping markets for trying your luck.
Is forex scalping profitable?
Forex scalping, like any other form of trading, has the potential to be profitable scalper’s objective is usually to make 5 to 10 pips /trade. However, scalpers should also encounter their failing trades as well.
What is the best timeline for scalping?
Many traders use a timeline of 1 to 15 minutes while scalping currency pairs. While there is no such thing as an “optimal” time period for scalping. Using 15 minutes for Forex scalping is not so popular. The most prominent durations are 1 minute and 5 minutes.
What is the best forex broker for scalping?
FBS (Cheapest spread scalping broker), FXTM (EAs scalping broker), OANDA (scalping broker for beginners), Pepper stone (MT5 broker for EA and scalping), are the most popular forex broker for scalping.
Now it is clear that the best currency pair for scalping has the biggest trading volume. Because of such enormous volume, the market gets more volatility and consistency. However, you can’t say they are the greatest pairs to trade.
What you have to do is to understand your trading strategy and capabilities along with your targets. Learn to choose the trades that are most fit for you. It’s not a guarantee that anyone who makes a good income from a pair will work similarly into your strategy.