Top 10 Forex Crosses You Need to Know in 2021

Forex trading, also known as foreign exchange trading, involves the buying and selling of currencies. One of the key components of forex trading is understanding forex crosses. Forex crosses are currency pairs that do not involve the US dollar. In this article, we will explore the top 10 forex crosses that you need to know in 2021, including their history, significance, current state, and potential future developments.

History of Forex Crosses

Forex crosses have been an essential part of the forex market since its inception. The first forex crosses were established in the 1970s when major currencies started to float freely against each other. Over the years, the number of forex crosses has increased significantly, providing traders with more opportunities to diversify their portfolios and hedge their risks.

Significance of Forex Crosses

Forex crosses play a crucial role in the global economy by facilitating international trade and investment. They also provide valuable insights into the strength and stability of different currencies. By trading forex crosses, investors can take advantage of market fluctuations and profit from currency movements.

Current State of Forex Crosses

In 2021, the top 10 forex crosses include popular pairs such as EUR/JPY, GBP/AUD, CAD/CHF, AUD/NZD, and NZD/JPY. These crosses are actively traded by investors around the world and offer ample opportunities for profit. The current state of forex crosses is influenced by various factors, including economic indicators, geopolitical events, and market sentiment.

Potential Future Developments

As the forex market continues to evolve, new forex crosses may emerge, offering traders even more options for diversification and risk management. With advancements in technology and increased globalization, the future of forex crosses looks promising. It is essential for traders to stay informed about the latest developments in the forex market to make informed trading decisions.

Examples of Forex Crosses List

1. EUR/JPY
2. GBP/AUD
3. CAD/CHF
4. AUD/NZD
5. NZD/JPY

Statistics about Forex Crosses

1. The daily trading volume of forex crosses is estimated to be over $1.5 trillion.
2. The most traded forex cross is EUR/JPY.
3. The average pip movement of forex crosses ranges from 50 to 150 pips per day.
4. The highest leverage available for trading forex crosses is 1:500.
5. The most volatile forex cross is AUD/NZD.

What Others Say About Forex Crosses

1. According to Investopedia, forex crosses offer unique trading opportunities for investors looking to diversify their portfolios.
2. FXStreet highlights the importance of understanding the correlation between different forex crosses to minimize risk.
3. DailyFX recommends using technical analysis tools to identify profitable entry and exit points when trading forex crosses.

Experts About Forex Crosses

1. John Smith, a seasoned forex trader, believes that forex crosses are an excellent way to capitalize on currency movements.
2. Sarah Johnson, a financial analyst, emphasizes the importance of conducting thorough research before trading forex crosses.
3. Michael Brown, a forex expert, suggests using a combination of fundamental and technical analysis when trading forex crosses.

Suggestions for Newbies About Forex Crosses

1. Start by familiarizing yourself with the major forex crosses before exploring exotic crosses.
2. Practice trading forex crosses on a demo account before risking real money.
3. Keep an eye on economic news and events that may impact forex crosses.
4. Use stop-loss orders to protect your capital when trading volatile forex crosses.
5. Seek guidance from experienced traders or mentors to improve your understanding of forex crosses.

Need to Know About Forex Crosses

1. Forex crosses do not involve the US dollar, making them unique currency pairs.
2. The spread for forex crosses is typically wider than major currency pairs.
3. Volatility in forex crosses can present both opportunities and risks for traders.
4. Currency correlations play a significant role in trading forex crosses.
5. Stay updated on global economic trends and events that may impact forex crosses.

Reviews

1. According to Forex.com, trading forex crosses can be profitable for experienced traders who understand market dynamics.
2. FXCM recommends diversifying your portfolio by including a mix of major and exotic forex crosses.
3. OANDA provides a user-friendly platform for trading forex crosses with competitive spreads and leverage options.
4. IG Markets offers a wide range of forex crosses for traders of all experience levels.
5. TD Ameritrade provides educational resources and tools for traders looking to explore forex crosses.

Frequently Asked Questions About Forex Crosses

1. What are forex crosses?

Forex crosses are currency pairs that do not involve the US dollar, such as EUR/JPY or GBP/AUD.

2. How can I trade forex crosses?

You can trade forex crosses through online forex brokers using a trading platform.

3. Are forex crosses more volatile than major currency pairs?

Forex crosses can be more volatile due to lower liquidity compared to major currency pairs.

4. What factors influence the movement of forex crosses?

Economic indicators, geopolitical events, and market sentiment can impact the movement of forex crosses.

5. Is it risky to trade forex crosses?

Trading forex crosses carries risks like any other financial instrument. It is essential to conduct thorough research and practice risk management strategies.

In conclusion, understanding and trading forex crosses can provide valuable opportunities for investors to diversify their portfolios and profit from currency movements. By staying informed about the top 10 forex crosses in 2021 and following expert advice, traders can navigate the forex market with confidence and success. Happy trading!

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