Taking into account that I only currently trade the 8 major currencies (EUR, USD, JPY, GBP, AUD, NZD, CHF, CAD) and therefore there are 28 currency pairs from these.
If I trade one that is kind of under the radar (e.g. CADCHF) would this have a significantly lower market compared to something more prominent? And if yes, is that because I’m trading an isolated pair (e.g. CADCHF only moves when people buy CADCHF specifically) or because CAD and CHF may be on the lower end of frequently traded pairs?
There called the Majors for a reason m8 cos there traded the most.
Majors are the pairs…!
Eg USD/CAD is one major GBP/USD is another so CAD/CHF is probably not gonna be as good as those…Suppose it depends on where the big money is going but it’s usually 1 of the majors
Also CAD/CHF would have a bigger spread
Apart from that i have not realy looked at CAD/CHF so im not sure 1 of the experts will come and tell you when they have time.
Ps. There still Traded alot though… why would you want to change from Majors pairs?
I have traded “exotic” pairs when they have really strong trends, stronger than the majors at the time. But the main problem is the cost - as above there’s a wide spread but I also found that often the distance from my entry price to the TA-based SL level was going to cost me a large % of my account if the stop was hit, even on a minimum position size. Not worth sacrificing risk management for some “easy” money.
No, that’s now it works
it works like this
You are trading CAD/CHF
Meaning, the strength of the CAD against the CHF
now the strength of the CAD is not just determined by buyers or sellers of CAD CHF, but intstead ANYONE THAT TRADES CAD vs Anyone other form
and the same is true for the CHF vs anyone other form
it’s not when people specifically trade CAD/CHF and if it’s unpopular it won’t have much attention, it doesn’t work like that .
Well, let’s say NZDCAD is one of the less popular traded crosses. You find that CAD is booming from oil prices, so you find a good pair to go long on CAD. You notice that NZD has been taking a beating and so rather than sticking to the majors and going for USDCAD, you put the best (CAD) against the worst (NZD) and see your trade soar.
