What currency is less risky to keep as base?

ElectricSavant said:
EUR/USD

Today I took a break for Labor Day. Listened to some podcasts/trading rooms...did some reading...etc

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Why would you limit yourself to just 1 currency pair, when there are 28 pairs you can choose from ?

What if the trading setup you are looking for is not on the EUR/USD but on the AUD/JPY instead, are you just going to ignore the AUD/JPY signal and not trade that day, because you only trade EUR/USD?
 
I was answering the thread authors query.

Tradex said:
Why would you limit yourself to just 1 currency pair, when there are 28 pairs you can choose from ?

What if the trading setup you are looking for is not on the EUR/USD but on the AUD/JPY instead, are you just going to ignore the AUD/JPY signal and not trade that day, because you only trade EUR/USD?
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ElectricSavant said:
I was answering the thread authors query.
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Yes of course. I asked you this question because some FX traders only trade just one currency pair all the time, mostly EUR/USD. They truly believe that specialization is the key. This idea may have some merit and that's why I wanted to have your opinion.
 
Anything that moves is the key.

These 3 pairs represent 6 different currencies. So exposure would not be duplicated if you held all three.

EUR/USD
AUD/CAD
CHF/JPY

Tradex said:
Yes of course. I asked you this question because some FX traders only trade just one currency pair all the time, mostly EUR/USD. They truly believe that specialization is the key. This idea may have some merit and that's why I wanted to have your opinion.
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Tradex said:
You probably mean Euro, because with EUR/USD the base currency is the Euro, and the quote currency is USD.
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:) I think you tried to clarify this four times now. You got what I meant.

I think some people trade only one pair because it is very hard and confusing to trade multiple pairs and then specially with totally different pairs like USD.CAD and EUR.CHF.

Are there any Forex trading systems or helper software that make this type of calculation easy so quick decisions can be made on the spot?
 
Most of the time USD as a base is very useful but I have found recently that JPY is a good and less risky to keep as a base, what do you think?
 
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