The volatility of certain assets is also something you can profit from

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The volatility of certain assets is also something you can profit from, especially if you seek short-term investments and use day trading strategies. So how do you introduce Forex pairs into your portfolio? There are three major categories of assets you can use to diversify your trading and manage your risks. Major currency pairs Those are considered EUR/USD, USD/JPY, GBP/USD, and USD/CHF - the currency pairs with the most traded volume.


Together, they make up to 85% of the market, making them the most cook islands business email list liquidity assets. The best thing about having them in your portfolio is relatively low spreads. Minor currency pairs They are often called ‘cross-currency pairs’ and include assets that don’t have USD in them. The most popular among them include GBP, EUR, and JPY. These assets would be a perfect fit for those interested in the related countries’ economy and follow the socio-political situation.


Exotic currency pairs Exotic currency pairs often consist of USD and a national currency of a known country with a smaller economy globally. This type of currency pairs may provide you with the perfect trading opportunities if your strategy includes a ‘high risk, high reward’ policy. Pro-tip: mind the correlation Correlation is significant when it comes to the choice of assets for your portfolio. Correlation is the measurement of the degree or extent to which two separate numeric values move together.