Currencies are traded in pairs in the forex market and as a trader, you would be choosing your currency pair before placing any trades or buying or selling. The most famous and most traded pair is EUR/USD. More than 80% of the traders trade in EUR/USD in a particular trading day. There are many other currency pairs as well which are usually traded in by the experienced or expert or at times by new traders. USDCHF is one of them. Trading USDCHF is not an easy thing to do. There are many factors you need to know to win when trading USDCHF.
A Brief Overview on USDCHF
USD/CHF or USD-CHF or simply USDCHF is known as US Dollar-Swiss Franc pair. The currency pair is considered pretty safe and somewhat less risky than other pairs. The price of the USDCHF pair would change only when either the USD or CHF currency moves up or down the price graph. Switzerland is considered a very stable as well as economically safe country and hence its currency CHF is also considered very safe and there are hardly any times when the price fluctuates too much. On the other hand, movements in USD are very rare and it's the currency traded and used worldwide without any fear of risk or usual devaluation.
Trading USDCHF is hence very easy and is considered free of risk. Mostly new traders and intermediate forex traders trade this particular currency pair provided they are guided accordingly by someone expert.
Factors you need to know to win when trading USDCHF
Interestingly, there aren't many things or factors you need to know before jumping in the USDCHF pair. However, here is a list of some important as well as vital factors which you need to keep in your mind:
The pair price moves with the changes in the macro factors of any of the country. So you need to plan accordingly and keep on looking for fundamental analysis, news, economic factors, political aspects and alike.History shows that USDCHF pair is very stable because Switzerland has a pretty stable economy, thus keep looking for the past records.According to a certain group of traders and experts, USDCHF and EUR/USD pairs move in a relation with each other. Both the pairs are correlated; therefore you can gain enough guidance from the correlation of these pairs.
Remember, it is never easy to trade in the forex market. You have to keep your eyes open all the times to sense any opportunity or risk. A good trader never invests all his/her money in one currency rather it's better to distribute your capital in several different pairs, keeping major investment in Franc because of its stable and safe nature.
Trading USDCHF is truly lucrative once you've mastered it. You can get the best USDCHF spread at a large Swiss broker that also a bank; check the details here: Dukascopy review. Also see working forex strategies on swing trading strategy.
No comments:
Post a Comment