I heard someone to tell that this pair is cheaper than the other, but I don’t understand the reason.
Has to do with our account’s currency?
Is it in relationship with the reward/risk ratio?
Has to do with the USD crosses?
And of course beyond any potential formed profitable patterns, if it is happening, it’s something constantly or is it changed over the time?
Not 100% clear how they came to compare the value of two pairs, their reasoning might be clearer if you could find out and explain it. But in any case, “cheaper” doesn’t mean a better buy.
Are you asking about the value of a currency in relation to the currency its paired with?
Unfortunately, I am not sure about your enquiry! Would you please describe it differently?
All pairs are not same some are cheap and some are very expensive in terms of trading. Currency pairs had less risk and low spread involving. Metals ans commodities had high spreads. It need more investment to trade in them.
hello vag,
indeed more clarifications needed in order to answer to your questions. “Cheaper” in terms of pip value or spread? e.g. For a USD based account, eur/usd and usd/jpy have different pip values, therefore one pair can be “cheaper” than the other. Same goes for spreads, since a pair with a bigger spread than another one can be more “expensive” for trading.
As a meaning of appreciation, definitely not.He was talking in terms of trading.But I found a possible answer to his sayings only to someone’s based account and whether the currency is base or a quoted one.Of course, this doesn’t seem to be a major criterion in our choices but it gives a plus according to the currency of our account.
Hi Nikos,
your answer It was the trigger to search more about it. And I end up in our account’s base currency without ignore of course, the spread. Thanks.
There is a confusion seen about currency pair i.e. what exactly is meant by currency pair in forex trading? well, A currency pair is the quotation and pricing structure of the currencies traded in the forex market; the value of a currency is a rate and is determined by its comparison to another currency.