Profitable Pairs

I have heard little on what are the BEST Pairs to trade
and what to stay away from, I like some feedback


You can make money on any pairs. The best pair for you might be a different one than me so how can anyone really answer this question. I love the GBP/JPY because of it’s extreme volatility but you have to be able handle a 100pip stop loss and very fast moves. On the other hand some pairs bairly move at all so you might be bored with them. You might also want to trade pairs where your from because you have a lot more knowledge on your country’s economics like the EUR/USD, GBP/USD, JPY/USD or AUD/USD. It’s all personal preference.


This is a very broad question and really depends on what your strategy is and what type of trader your are.

Are you a trend trader or range trader??
What time frame can you hold positions?
Which hours can you trade and watch the markets?
Do you like a lot of volatility?

so on and so forth…

Before you look for which pair to trade, find out what your views and beliefs are about trading and the markets. You will begin to define what the type of trader you are and the trading style most comfortable to you. From that point on we can better help you with more detailed questions such which currency pairs work well with certain trading styles and vice versa…

In the majors the 2 most volatile pairs to trade are the usd/jpy and the gbp/usd. You can go to bed with out a stop loss and wake up deep in the hole. It can also go the other way.

The usd/chf and euro/usd are the safest currencies to play.

If you have the cojones, the gbp/jpy is a roller coaster with an average daily pip range of about 132 pips compared to 34 pips for the usd/chf and euro/usd.

Then you have to consider the price per pip move…the usd/chf and usd/jpy pay or cost about $8.33 a pip on $100,000 , while the euro/usd and gbp/usd pay or cost $10.00 a pip.

Then the cost of buying the currencies vary. In a 400 to 1 account, $100,000 usd.jpy cost you around $250.00 where the same amount gbp/usd will cost you nearly 500 bucks.

Now there is the swap or daily interest you have to factor in. If you are short or long on a currency you will either be paid or have to pay every day for the positions you hold. Going short on $100,000 gbp/jpy will cost you $29.00 per day, so if you have to hang on to this sucker for 30 days that is a decent bit of coin.

The daily interest seems like nothing , but it adds up very quickly. So make sure you are with a broker that pays as well it costs when it comes to interest.

So to answer your question, you have to determine how well you want to sleep at night. I love to make 50 pips a move to risk my money. I hate waiting around for the euro or swissy to do it. I have been burned by the yen and pound many times but jump in when the stars align. But my personal fav is the gbp/jpy…I love holding it going up for the interest, and love riding it down cuz when it goes down it drops like a stone and the pips move like a guage at a gas station. But you must be willing to lose . Remember that the best investment bankers in the world know they will only win 30% of the time, but those 30% will be lucrative trades.

BTW in the time I have written this my charts told me to go short the gbp/jpy and I have just made $1200 bucks. Now you put a trailing stop on it and let it ride. Gotta love that pair.

Understand what impacts the currency pairs. There is a correlation between the euro/usd and usd/chf…when one goes up, the other goes down and vice versa…there is the same correlation between gbp/usd and the usd/jpy. Understanding what makes the pairs tick comes with experience. It took me a month to figure out that if you multiply the price of the usd/jpy and the gbp/usd you get the price of the gbp/jpy. Now before I make a move I pay attention to what all three charts are telling me and use them all for entry and exit points.

Hope this helps…it only seems like rocket science in the begining, and once you think you know what is going on, you discover that you don’t know what you don’t know.

Good Luck

Great input dailyforexpick!

Question based on the original question: Which pairs are best for trading if your main trading hours are:

  1. When the London and New York Session overlaps (8:00 am to 12:00 pm EST)
  2. The Asian Session (7:00 am to 4:00 pm EST)

I would assume it would be the GBP/USD and the USD/JPY for the first one, and most of the JPY pairs for the second one…but, its not good to assume, so please help me out with an answer. Thanks.

dailyforexpick :eek:
a lot of scary stuff there… the swap, the correlations between different pairs…
geat post

i LOVE the JPY!! USD/JPY GBP/JPY EUR/JPY. When the yen moves… it MOVES and seems to be much more influential in the movement of all those currency pairs. You will see a very similar pattern accross all 3 JPY pairs.


I cant really comment on what are the best pairs to trade. I am in total agreement with james231287, JPY crosses move quite a bit but they also have quite long candles/bars so even when daytrading I set my stop loss to 50-60pips, sometimes more.
I’d probably try to avoid trading currencies like Mexican peso, Hong kong dollar, Hungarian forint and even Kiwi due to their relatively small/weak moves. They tend to move sideways a lot. I also find EUR and GBP crosses pretty agressive.