why in forex we have to trade only major currencies?

fxfrench

FXOpen AU Representative
Messages
392
Really, its a simple case of (yes liquidity) these minor currencies not really being traded on the open exchanges. This is why you don't see exotic pairs like USD/IQD or USD/ZWD ;)
 

MDunleavy

iticsoftware.com Representative
Messages
185
Hai,

I am a beginner to forex.I got a doubt.Pls explain it..Why in forex we have to trade only major currencies,like EUR/USD etc... and not one major currency and one minor currency like USD/IND..

For example Oanda broker, have a look.
AUDCAD AUDJPY AUDNZD AUDUSD CADJPY CHFJPY EURAUD EURCAD EURCHF EURCZK EURDKK EURGBP EURHUF EURJPY EURNOK EURNZD EURPLN EURSEK EURTRY EURUSD GBPCAD GBPCHF GBPJPY GBPUSD NZDCAD NZDJPY NZDUSD USDCAD USDCHF AUDCAD GBPJPY USDCNY USDCZK USDDKK USDHKD USDHUF USDINR USDJPY USDMXN USDNOK USDPLN USDSAR USDSEK USDSOD USDTHB USDTRY USDTWD USDZAR

Many exotic pairs... But major pairs are more analysts ...
 
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nyfxtrade.com

Private
Messages
18
It's also depends on what style of trading you choose! Scalpers prefer GBP/JYN on the other hand long-term you see more of EUR/*** pairs
 

Lhar_fpa

Private, 1st Class
Messages
135
Hai,

I am a beginner to forex.I got a doubt.Pls explain it..Why in forex we have to trade only major currencies,like EUR/USD etc... and not one major currency and one minor currency like USD/IND..

Well, because major currencies are the basis for investment. It has a strong power over the other currencies.
 

pepper1

Private
Messages
11
you certainly have a lot to learn nayani, no person is under obligation to stick only to the major currencies, spreads are typically or noticeably smaller when compared to exotic currency pairs though.
 

cowmadagan

Sergeant
Messages
393
The simple answer for some currency pairs is that only the government can change the price of some currencies and they don't allow trading with digital amounts.
For example in Taiwan you can have a bank account with USD, HKD, GBP, AUD, CAD, SGD, CHF, JPY, ZAR, SEK, NZD, THB, EUR, KRW, VND, or MYR, but can only deal in cash for PHP, IDR, and CNY. That's the law, not the convention.
You can also look at how you can trade crude oil if your account is in the UK, but you can't if your account is in the US or Taiwan (dunno where else).
 
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