You can trade in the foreign exchange market with different instruments. However, it should be borne in mind that not all trading assets bring the same profit. There are instruments that have low volatility and liquidity and it will take a very long time and long-term transactions to get income on them.
But there are also highly liquid assets, such as majors and market indices. On the website https://alpari.com/ru/markets/cbr/kurs-eur-euro/ you can see how the exchange rates against the Russian ruble and their current values for different instruments are changing.
Not every a currency pair can bring good returns to a trader. You can even say that they all have not only their own characteristics, but also character. The most mobile and favorite among many beginners are the majors, such as the European currency against the US dollar. The Australian dollar is considered a more aggressive instrument, and the pound sterling is generally almost unpredictable. Therefore, it is very difficult for beginners with the last two currencies:
- The Australian dollar on the chart can be observed sharp jumps, which may in some cases simply knock out the stop loss level if it is placed close.
- The Australian is considered an aggressive currency and has a bright pronounced sharp dynamics, which significantly increases financial risks.
- Pound sterling differs from the above-described option in smoother movements, but at the same time very impetuous. He can pass hundreds of points in a very short time, and during strong movements, such as the release of important news, even thousands. It is one of the most volatile instruments.
These are specialized derivatives for Forex trading. For example, consider the dollar index. Such an asset includes averaged indicators for all instruments that include the US dollar:
- European currency against the US dollar.
- US dollar to Australian dollar.
- Pound sterling against the US dollar and other currency pairs.
If the dollar begins to rise in value, then such a relationship will be monitored in absolutely all pairs, which include it. Therefore, on the aggregate of supply and demand, the indicators for the dollar index will be calculated. Due to the complexity of calculations and future predictions, market indices are less popular with traders than currency pairs.