Newbie Question: Choosing Markets

X

Xtreme

Hi everyone,

I was wanting to know how to best choose the forex market to trade.

For Example:

I'm intrested in trading the JPY & USD but I'm not sure if I should do my analysis on the JPY/USD or USD/JPY. Its the same currencies but in a different order.

I'm only new to forex and any light would be a great help.

Thanks in advance.

Xtreme.....
 
Quote from Xtreme:

Hi everyone,

I was wanting to know how to best choose the forex market to trade.

For Example:

I'm intrested in trading the JPY & USD but I'm not sure if I should do my analysis on the JPY/USD or USD/JPY. Its the same currencies but in a different order.

I'm only new to forex and any light would be a great help.

Thanks in advance.

Xtreme.....
More...
Xtreme: And I thought *I* had complex questions when first starting....

I suggest you choose the order of the pair that you would actually be trading.

As far as I know the proper order on most common SPOT platforms is USD/JPY.

As far as other pairs, you may want to look at minors and exotic crosses as well because 1) they tend to trade slower and 2) they react to new stories more pronounced, so you could see how traders respond to various economic indicators via news.

Regards,
 
Quote from Xtreme:

I'm intrested in trading the JPY & USD but I'm not sure if I should do my analysis on the JPY/USD or USD/JPY. Its the same currencies but in a different order.
More...

Are you going to trade futures or spot? Use USD/JPY with spot FX and JPY/USD with futures because that is how they are quoted.
 
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