What to Trade in Forex

• Forex is a market where currencies of different countries are traded. Almost 15 percent of transactions are carried out by the companies import/export & converting profits to their own native currency. Remaining 85 percent movement in currency market is based on Speculators like you & me.
• Currencies are always traded in pairs. Buying or Selling one currency with respect to other currency. These pairs are classified in three categories.
• First, Currency pairs that involve US dollar are called as Majors. Example-

1. US dollar , Japanese yen             USD/JPY
2. Euro ,US dollar                             EUR/USD
3. Britain Pound ,US dollar             GBP/USD

• Second category is Minors or Crosses. Currency pairs that do not involve US dollar. 

1. Euro , Swiss Franc                        EUR/CHF
2. Britain Pound, Japanese yen      GBP/JPY
3. Aussie dollar, Swiss Franc           AUS/CHF

• Third category is Exotic Pairs. Here the Major currency is paired with the currency of a country with emerging economy.Spreads are again quite large on exotic pairs

1. US, Thailand                                 USD/THB
2. US, Mexico                                    USD/MXN
3. US, Sweden                                   USD/SEK

•  US dollar is the most traded currency. It involves more than 80 percent of transactions.
• Traders mostly concentrate on Majors. Whereas second comes Minors. I personally like  trading both.