Thursday, June 12, 2014

Trading Forex Pairs

The second component of what makes a good pair to trade is the spread. Having a 100 pip ATR doesn’t do you a lot of good if the spread is 50. Does not usually happen but you get the idea. However traders would like to see a ratio of the spread to the daily ATR of about 1:50 or more. What this means is that if a particular currency pair has a spread of two pips, You would like to see at least a 100 pip ATR. Often this is very easy to achieve, but in our current market it doesn't happen too often.
Best Forex Pairs