Choosing an asset also means choosing liquidity, costs, trading hours and risks. A chart symbol is not enough: check the traded product, contract size and platform rules.
Foreign exchange / Forex: reading currency pairs
Forex quotes one currency in another. EURUSD, for example, shows how many US dollars equal one euro. Currency exposure can be traded through different instruments; a CFD is not the same as buying currency for travel.
Major currency pairs
The main major pairs combine USD with other important global currencies. They are widely traded, but liquidity, spreads and volatility vary with the session, news and broker conditions.
| Pair | What to consider |
|---|---|
| EURUSD | Euro / US dollar: euro area and US monetary policy. |
| GBPUSD | Pound sterling / US dollar: UK and US news. |
| USDJPY | US dollar / Japanese yen: monetary decisions and risk sentiment. |
| USDCHF | US dollar / Swiss franc: Swiss policy and demand for defensive assets. |
| USDCAD | US dollar / Canadian dollar: Canadian data and, at times, oil prices. |
| AUDUSD | Australian dollar / US dollar: Australian data and commodity demand. |
| NZDUSD | New Zealand dollar / US dollar: New Zealand data and commodities. |
Liquidity, spreads and volatility
Liquidity describes how easily a trade can be executed without a large price impact. The spread is the gap between buying and selling prices; it matters particularly for short trades. Volatility measures price swings and does not make a trade safe. Costs, slippage and gaps can increase around news or when liquidity is low.
Sessions and differences between pairs
Asian, European and US sessions attract different participation. The London–New York overlap often concentrates activity in several USD pairs; it guarantees neither tight spreads nor good results. JPY pairs may react to Japanese news; GBP, EUR, CAD, AUD and NZD have their own calendars. Consider time zones, daylight saving changes and instrument specifications.
Other assets worth understanding
XAUUSD / Gold
Many platforms use this symbol for gold quoted in US dollars. Interest rates, the dollar and news can affect its price. Check contract units, margin and costs; a gold CFD does not give you ownership of the metal.
BTCUSD / Bitcoin and cryptocurrencies
Cryptoassets are highly volatile and spot markets often remain active on weekends. Spot purchases involve custody; derivatives have different rules, margin and risks. Contract hours may differ from spot market hours.
Indices
Track baskets of shares. Index products have their own sessions, composition and rules; trading them does not mean owning every constituent.
Shares
Spot shares represent ownership in a company. Earnings, corporate news and events can cause gaps. Share CFDs have different costs and rights.
Other commodities
Oil, silver and other commodities may react to supply, demand and contract expiry. Understand the product before trading it.
An introduction to timeframes
A timeframe is the period used to form each candle. An H1 candle covers one hour of prices; M5 covers five minutes. Different horizons can help assess context and entries, but no timeframe is automatically more profitable.
Fit the choice into your plan
Start with a small set of instruments, observe actual costs and record your reasons for choosing them. Match your analysis horizon to your style, available time and risk limit. A timeframe is not an order’s expiry time.
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