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What is Leverage in Forex Trading?

Leverage is a feature that lets you borrow money from the broker. It allows you to invest more than your actual balance and control a larger position in the market.

Using leverage, you can trade large positions and increase your chance of making more profit. The ratio of your capital and the loan is the leverage. Brokers usually offer leverage from a minimum of 1:10.

Many financial advisors and traders do not use leverage while trading currency. But you would need a large trading balance to make money in Forex without leverage.

How Leverage Works

Leverage works based on the margin call and your preferred leverage ratio. Now, margin is the small amount of your own money that you need from your account balance to open the leveraged position in the market. Profits and losses are calculated on the entire position size, not just the deposit.

Here’s how it works-

Leverage/Borrowed Capital from Broker:

Your Forex broker provides you with the leverage options that magnify your capital and chances as well. This lets you open a trade position much larger than your actual deposit.

Margin/Leverage Ratio:

The leverage works when you choose the leverage margin and risk-to-reward ratio. That said, leverage is closely dependent on the margin, which is the portion of your total capital account that’s locked up to open a trade on a given leverage. Higher leverage means a lower margin call but greater financial exposure.

The formula to calculate the margin is  pretty simple-

Now, if you use 1:20 leverage, it means you will need 1 unit of margin for every 20 units of currency you want to trade.

Amplified Trade Result:

As leverage works as an amplifier. If your trade is profitable, the profits are also amplified based on the full size of the trade, not only your margin limit.

On the other side, if your trade goes against you, losses can be magnified as well. Sometimes losses can be even more than your initial investment if a higher leverage margin is applied.

Why Leverage Matters in Forex Trading (Especially for a $100 Account)

For a small account like a $100 account, leverage can be very tempting. It allows traders to trade for a larger position than their capital investment and unlock more profit opportunities. However, there are some risks as well.

• A larger trade position can bring more volatility for your account.
• When too much higher leverage is used, a small pip movement can result in huge losses.
• When your margin ratio falls below broker thresholds, open trade positions may be forcibly closed.

Most Common Types of Leverage Ratios Brokers Offer

From a minimum of 1:10 to a maximum of 1:500 are common and best leverage options for retail traders.

Here are the typical leverage ratios and the margin requirements for each leverage ratio-

From these leverage options, 1:10 is very low leverage, including conservative risk. This is obviously not recommended for beginners or traders with a $100 account.

Again, 1:500 is too high leverage, which is why most brokers don’t allow this.

So, the balanced and recommended leverage for beginners or retail traders is 1:50 and 1:100. Among these, 1:50 is mostly used during offshore trading.

What is the Best Leverage for $100 Forex Account?

The best leverage for $100 forex account is 1:100.

Now, as a beginner trader, if your trading balance is $100, most professional traders recommend this leverage ratio.

If your leverage is 1:100, it means for every $1, your broker gives you $100. So if your trading balance is $100, you can trade $10,000 ($100*100).

You can now invest $10,000 and before trading, you need to manage your risks properly so that you do not blow your account.

Your lot size should not be more than 0.01 and do not risk more than 2% per trade. Also, trade 1 pair at a time and do not forget to use SL & TP.

Can You Make Money In Forex Without Leverage?

It depends on your trading skills and expertise. But if you are a beginner or retail trader starting with a $100/$200 account, trading without leverage is never recommended.

Leverage is one of the core attractions for Forex traders to enter the market. Traders like to gain knowledge on the use of trading Forex. It is indeed a crucial part of forex trading, especially Forex Leverage for beginners.

Advantages of Forex Trading Without Leverage

Leverage allows traders to invest more than their actual balance and increases the chances of their potential win in the market. In simple terms, it is the amount you take from your foreign currency broker as a loan.

• You Can Minimize Risks

There are many investors and traders who like to trade with their trading account balance and prefer not to use leverage. The main reason behind this is the risk you need to take with it.

It gives you a chance to make more profits from the market, but it also comes with a risk of losing. If you make a small mistake in trading, you have a huge chance to wipe out your account.

• Zero Psychological Hassle

As you’re not using any leverage, you have less pressure on your shoulders. You can focus more on your strategies and trade calmly.

Disadvantages of Forex Trading Without Leverage

Despite the chances for maximizing profit, there are some disadvantages of using leverage.

• Limited Monthly Return

By using leverage, you can make 3-5% average profit a month. But if you trade without any leverage, you can make only 0.3 to 0.5% a month. It is perfect for those whose account balance is very large. So, it can be a drawback for many experienced or institutional traders.

• Fewer Broker Options

Most brokers don’t allow you to trade without leverage. They provide a minimum of 1:33 leverage. You can search for high-leverage Forex brokers who offer leverage of 1:1.

• High Account Balance

To do forex trading without leverage, you need to have a large account balance. But for most beginner forex traders, it is impossible to trade with large amounts of FX money.

• Low Purchase Power

If you have a small account like $100, you can open max 1-2 positions without leverage. It minimizes your chances of trying different trading strategies and making profits from the market.

Should You Use Leverage or Not?

Well, it totally depends on you, and yes, there’s no one-size-fits-all answer. Alright, everyone, here is the explanation for this million-dollar question.

 But if you’re aiming for quick, high-reward trades, leveraging up could give you the boost you need, just keep in mind the bigger risks.

Ultimately, the decision to use leverage is both personal and situational. Whatever you decide, make sure to educate yourself thoroughly.

Learn about risk management and practice with a demo account before diving in. As your account grows, you may safely dial leverage up or down.

Trading Strategies Using Leverage for $100 Forex Accounts

Trading strategies depend on total capital investment and risk tolerance. However, some strategies are recommended, backed by seasoned expert traders.

• Swing Trading:
  It is a medium to long-term trading strategy that requires higher leverage and discipline. Trades can be held for days to weeks. Trading the major currency pairs are ideal in this strategy. However, SureShotFX delivers accurate and profitable swing signals. If you want to trade without the tiring chart analysis, give SureShotFX a try. You’ll be thanking yourself later for trying SSF signals.
• Scalping Trading:
  This is where you take a bunch of small profits throughout the day by opening and closing positions really quickly. Without leverage, you may not be able to make huge profits on each trade, but if you can learn scalping strategies, you can really add up over time.
• Day Trading:
  It is a trading strategy ideal for full-time traders. Day traders can open and close trades daily, wrapping up the profits gained within a day.
• Trend Following:
  Catch pips on the market trends, both upward and downward. In an upward trend, enter long positions or pullbacks, while in the downward trends, sell at the resistance level.

However, conservative leverage like the 1:20 to 1:50 is ideal to use in this case.

Whatever strategy you go for, the key when trading without leverage is discipline and patience. And the bitter truth is, you aren’t going to get rich overnight without the leverage boost.

But the catch is, if you stick to your trading plan and let those small wins compound over time, you can end up doing much better than those with the leveraged ones.

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Conclusion

Well, let’s have a quick review of the whole article. Forex Leverage is a powerful tool that gives you the buying power, but it comes with limitations as well. And trading without leverage might give you the freedom to take higher risks, but it also limits your profit potential. And it’s totally up to you and your trading plans to decide whether to go for it or not.

Well, if you make up your plan to not go for leverage, make sure to choose the best leverage for a $100 Forex account.

Be patient and disciplined in your trading. And keep learning and developing your skills as a trader. Eventually, protecting your capital should be your top priority.

However, if you want some automation and profit without any chart analysis, try SureShotFX signals to trade Forex, Gold, and Indices with the best use of leverage.

FAQs:

The post Best Leverage for $100 Forex Account: Guide for Beginners appeared first on SureShotFX.

What is EURUSD?

EURUSD is a foreign exchange (Forex) currency pair that represents the value of the Euro (EUR) against the US Dollar (USD). It shows how many US Dollars are needed to buy one Euro.

Being the most traded pair in the Forex market, EURUSD offers:

• High liquidity
• Tight spreads
• Consistent price movements

This makes it a popular choice among day traders, swing traders, and scalpers. Its popularity also stems from the transparency and predictability of major economic influences, which allow traders to combine technical and fundamental analysis to anticipate price movements effectively.

What Determines the EUR/USD Exchange Rate?

EUR/USD exchange rate is determined by a variety of economic and geopolitical factors, including the monetary policies of the US Federal Reserve and the European Central Bank, interest rate differentials, inflation figures, and overall economic performance in both regions.

Additional factors that influence the EUR/USD rate include:

• Central Bank Monetary Policies: Decisions by the US Federal Reserve (Fed) and European Central Bank (ECB) on interest rates and liquidity measures.
• Interest Rate Differentials: Differences in interest rates between the Eurozone and the US often drive capital flows, impacting EUR/USD prices.
• Inflation Figures: Rising or falling inflation in either region can strengthen or weaken the respective currency.
• Economic Performance: GDP growth, employment data, trade balances, and overall economic health influence investor sentiment and market movements.
• Geopolitical Events: Political stability, elections, and global crises can create volatility in the EUR/USD pair.

EURUSD Exchange Rate in 2025: Monthly Analysis

The EUR to USD exchange rate showed volatility throughout 2025. It began the year near $1.0352 in January, fluctuated over the months, and eventually settled in the $1.1593–$1.1630 range by November. The lowest point was in mid-January, falling to $1.0243, while the highest was in mid-September, reaching $1.1866.

Below is a month-by-month overview of the EUR/USD exchange rate in 2025:

Who Trades EUR/USD?

Retail traders, institutional traders, central banks, multinational companies, hedge funds, investment firms, and Forex brokers mostly trade EUR/USD. The EUR/USD pair is underpinned by over $1 trillion in annual trade in goods and services between the eurozone and the US.

• Retail traders – Individuals seeking short-term profits
• Institutional traders – Banks, hedge funds, and large financial firms
• Central banks – Such as the ECB and the US Federal Reserve
• Corporations and multinational companies – Managing currency risk
• Forex brokers and market makers – Providing liquidity for clients

Why Forex Traders Trade EURUSD?

EUR/USD is the most popular currency pair in Forex trading due to its high liquidity, low spreads, and predictable price movements. Traders can capitalize on both short-term fluctuations and long-term trends, making it suitable for day trading, swing trading, and scalping strategies.

• High liquidity: Easy to enter and exit trades without affecting the price significantly
• Tight spreads: Lower trading costs compared to other currency pairs
• Predictable trends: Clear technical patterns for analysis
• Frequent trading opportunities: Multiple setups available daily
• Global economic influence: Price movements reflect major economic events in the US and the Eurozone

How to Trade EUR/USD?

Traders approach EUR/USD trading in two main ways: they either trade independently using their own market analysis or follow expert EURUSD signals from experienced EURUSD traders. Both methods can be profitable when applied correctly.

What Are EURUSD Signals?

EURUSD signals are trade alerts that indicate the best opportunities to buy or sell the Euro against the US Dollar. Expert Forex traders generate these signals by analyzing a combination of technical indicators, chart patterns, and fundamental news affecting the EUR/USD currency pair.

Once analyzed, these signals are shared as live EURUSD alerts on Telegram, enabling beginner and experienced traders to act quickly on profitable trading opportunities.

Each signal typically includes:

• Entry price: The recommended price at which to open a trade.
• Stop-loss level: A safety measure to limit potential losses.
• Take-profit level: The price target for closing the trade at a profit.
• Trade direction: Whether to buy (go long) or sell (go short) the EUR/USD pair.

How EURUSD Signals Work on Telegram

Telegram has become a popular platform for receiving real-time EURUSD signals due to its speed, convenience, and ease of use. By subscribing to verified signal providers’ Telegram channels, traders can receive clear trading instructions.

Its instant messaging capabilities allow traders to act quickly on market opportunities without missing crucial entry or exit points.

The following steps illustrate the typical workflow for how EURUSD signals are delivered and executed via Telegram:

Why EURUSD Signal’s Accuracy Matters in Forex Trading?

The accuracy of EUR/USD signals is crucial because inaccurate signals can lead to significant financial losses, poor risk management, and the development of bad trading habits. In Forex trading, the difference between profit and loss often comes down to timing and precision.

Trading EUR/USD pairs can be highly profitable if you follow real-time accurate signals. These signals provide clear guidance on the right entry and exit points, stop-loss levels, and take-profit targets with clear guidance, helping traders navigate the volatility of the EUR/USD market with confidence.

Accurate EURUSD signals provide:

• Increase the probability of profitable trades
• Reduce losses and manage risk effectively
• Save time on market analysis
• Build confidence in trading decisions
• Support multiple trading strategies

Where do I Get the Most Accurate EURUSD Signals?

If you are expecting 100% accurate signals or never want to experience any losses, you may be disappointed—no source can guarantee perfect trades. When you are thinking of trading EURUSD, you have to prepare yourself for market fluctuations and occasional losses.

The most reliable places to get EURUSD signals include:

How to Choose the EURUSD Signals Provider in 2026 for You?

Choosing the right EURUSD signals provider can make a big difference in your trading results. The right provider ensures timely, accurate signals, helps you manage risk, and supports your trading strategy.

Focus on these key factors when making your choice:

• Proven Track Record: Check for consistent, verifiable performance over time.
• Transparency: Signals should clearly include entry, stop-loss, take-profit levels, and strategy explanations.
• Reputation: Look for reviews, testimonials, and feedback from real traders.
• Real-Time Delivery: Alerts should be sent instantly via Telegram, apps, or trading platforms.
• Customer Support: Reliable providers offer responsive client support for queries or technical issues.
• Realistic Accuracy: Avoid providers claiming 100% success.

Which Signal Provider Offers the Most Accurate EURUSD Signals?

If you’re looking for the most accurate EURUSD signals, SureShotFX is widely recognized as one of the most trusted providers in the Forex market. They offer both free and premium EUR/USD signals through their Telegram channels.

SureShotFX has a specialized team of Forex market experts who focus exclusively on the EUR/USD pair, analyzing exchange rate movements, market trends, economic news, and central bank decisions to deliver highly reliable signals.

In addition to EURUSD, SureShotFX also shares signals for multiple currency pairs, gold, and indices, allowing traders to diversify their strategies with expert guidance.

Here’s what makes SureShotFX stand out:

• Real-Time Alerts on Telegram: Traders receive instant updates with entry, SL, and TP levels, enabling quick execution.
• 24/7 Client Support: Assistance is available anytime to help with technical issues, trading queries, or account setup.
• Free and Paid Signals: Beginners can start with free EURUSD signals, while premium EURUSD signals offer more advanced strategies and frequent alerts.
• Verified User Reviews: SureShotFX has positive feedback on Trustpilot and performance records on Myfxbook, adding credibility to their services.
• SSF Trade Copier: Automatically mirrors signals to MT4/MT5 accounts, ensuring timely trade execution without missing opportunities.
• Educational Resources: Members receive eBooks, free courses, newsletters, and trading guides to improve skills and knowledge.

Conclusion

High-quality EURUSD signals can be a game-changer for Forex traders, whether you are a beginner or experienced. Following reliable live EUR/USD signals on Telegram helps traders act quickly on buy or sell EURUSD opportunities, reduce risks, and improve decision-making.

Start receiving accurate EUR/USD signals today and take your trading to the next level—join SureShotFX now to get started!

FAQs

The post Get the Most Accurate EURUSD Signals to Maximize Your Trading Profits appeared first on SureShotFX.

What is a Pip Calculator?

A Pip Calculator is a Forex tool that converts pip movements into precise monetary values, showing exactly how much each pip is worth based on your lot size, currency pair, and account currency. It helps traders know potential profit or loss before entering a trade.

• This tool eliminates manual calculations, ensuring accurate pip values across all instruments.
• By instantly showing cash value for every market move, traders can make informed, confident decisions instead of guessing.

Why is a Pip Calculator Important in Forex Trading?

Pip Calculators ensure precise risk management and informed trading decisions by converting abstract pip movements into real money values. It removes blind spots from your risk management. When traders rely on mental math, they almost always underestimate the real dollar value at stake.

Using a Pip Calculator gives traders 3 key advantages:

A reliable Pip Calculator ensures you trade based on accurate numbers, not guesswork.

Pip Calculators vs. Manual Calculation: Which Is Better?

Automated pip calculators outperform manual calculations in practical trading, offering instant, precise, and error-free results. Manual pip calculations still have educational value — they help you understand the structure of currency pricing. A pip calculator gives instant, error-free results across all currency pairs, including those with odd pricing formats such as JPY crosses, gold, or crypto-indexed pairs.

Manual pip calculation creates unnecessary friction in fast-moving markets. The calculator simply delivers consistent, precise answers, which is exactly what you need when the market behaves like a caffeinated hummingbird

Professional traders overwhelmingly choose automated Pip Calculators because:

Manual math might work for learning, but automated pip tools are the smarter long-term choice for both speed and precision

Common Mistakes When Using Pip Calculators

Common mistakes when using a pip calculator include entering the wrong lot size, selecting an incorrect currency pair, and ignoring account currency differences. These errors lead to inaccurate pip values and misleading risk calculations.

A pip calculator works only when the inputs match real trade conditions. If you choose the wrong pair or forget that cross-pairs convert pip value into your account currency, the final value becomes unreliable. Correct inputs ensure your risk per trade stays consistent across market conditions.

Mistakes also include:

What to Look for in a Reliable Pip Calculator Tool?

A reliable pip calculator tool helps Forex traders accurately calculate the value of pips for different currency pairs, account sizes, and leverage. Traders should look for accuracy, speed, and compatibility with multiple trading platforms.

Key features to consider include:

• Support for multiple currency pairs – ensures precise calculations for all your trades.
• User-friendly interface – makes calculations quick and reduces human error.
• Accessibility on web and mobile – so you can calculate pip values anytime, anywhere.
• Real-time market data: Live quotes ensure the pip value matches current trading conditions.
• Flexible lot input: Standard, mini, micro, and custom lot sizing should be supported.
• Clear formulas displayed: Reliable calculators show the calculation formula for transparency and verification.
• No hidden assumptions: The best tools clearly state pip size rules (0.0001 or 0.01 for JPY pairs).

A strong Pip Calculator eliminates guesswork and keeps risk management consistent, especially when trading multiple currency pairs.

What is the Most Used Pip Calculator for Forex Trading?

Across the Forex community, the SureShotFX Free Pip Calculator has become one of the most widely used options due to its reliability, accuracy, and simple user experience.

With a 4.5★ rating, 119+ verified reviews, and 10,000+ downloads, it has earned a strong reputation among beginners and professionals alike.

Traders choose it because it works smoothly on both mobile and web, calculates pip values instantly, and converts results into the trader’s account currency—removing the usual guesswork from trade planning.

Whether someone is analyzing EUR/USD or exploring more volatile pairs like GBP/JPY, the calculator offers consistent accuracy that supports informed trading decisions.

What is the SureShotFX Pip Calculator and Why Traders Prefer it?

The SureShotFX Pip Calculator is an upgraded, feature-rich Forex calculation app designed to simplify pip value, stop-loss, and take-profit evaluations. The SureShotFX Pip Calculator is trusted by thousands of traders worldwide to calculate pip values and potential profits instantly. 

Unlike generic pip calculators, SureShotFX offers:

• Instant pip and monetary calculations
• Support for major, minor, and JPY currency pairs
• Automatic account currency conversion (USD, GBP, EUR)
• Flexible lot size options for Standard, Mini, and Micro lots
• A clean, intuitive interface suitable for all trader levels
• A completely free experience without any signup requirements

Traders really love the SureShotFX Pip Calculator app because it’s a free, reliable tool that simplifies complex pip‑value calculations in one smooth interface — whether you’re trading forex, indices, or commodities. The app is available on Android (Google Play) and iOS (Apple App Store).

On Android, it holds a solid rating of 4.5★ (based on more than 10K+ reviews), thanks to its accuracy, intuitive UI, and clarity in calculating risk and reward. Meanwhile, the wider SureShotFX service often gets mentioned on Trustpilot, also it has a very good review score on trusted sites like myfxbook (4.6 out of 5).

Users often praise the customer support and the usefulness of the calculator, though there are some critical voices too.

How to Use the SureShotFX Pip Calculator

The SSF Pip Calculator is built for fast trade planning, and its workflow is intentionally simple.

Here is the full step-by-step breakdown:

Green highlights potential gains, while red alerts you to potential losses.
If any entry is invalid, the app displays a minus sign, prompting you to correct your inputs before executing a real trade.

This seamless process removes manual math errors and empowers traders to make decisions rooted in precise, real-time calculations.

What Are the Benefits of Using the SureShotFX Pip Calculator?

Using the SureShotFX Pip Calculator helps traders make informed and profitable trading decisions.

Key benefits include:

• Accurate Real-Time Calculations: It provides instant pip values and monetary outputs, which help traders understand their exposure within seconds.
• Better Risk Management: By showing pip differences and potential losses upfront, traders avoid emotional or impulsive decisions. Every trade becomes more controlled and calculated.
• Wide Forex Pair Availability: With a broad selection of currency pairs, it accommodates every trading style—from majors to minors to JPY pairs.
• Account Currency Flexibility: Switch between USD, GBP, and EUR based on your trading balance. This removes conversion errors that often confuse beginners.
• User-Friendly and Lightweight: At only 30 MB, the app loads quickly, works on nearly all mobile devices, and keeps the interface simple for all experience levels.
• Instant Error Detection: The minus sign alert prevents traders from using incorrect or impossible price levels, reducing the risk of miscalculated trades.
• Portable and Always Accessible: Because it works both as a mobile app and online tool, traders can analyze setups anytime—without needing a desktop.
• Confidence in Every Trade: With reliable calculations and clear visuals, the SSF Pip Calculator becomes a dependable companion for building consistency.

When pip values, risk metrics, and trade direction are perfectly aligned, traders make sharper choices and avoid unnecessary mistakes.

Conclusion

A Pip Calculator is more than a tool—it’s a core component of disciplined Forex trading. By understanding pip movements, risk levels, and expected monetary outcomes, traders gain clarity that directly leads to better long-term performance.

The SureShotFX Pip Calculator elevates this experience with instant calculations, flexible currency options, accurate pip insights, and a user-friendly design, making it one of the most preferred choices today.

Mastering pip calculations is a decisive step in becoming a professional trader. Use tools that bring clarity, reduce risk, and strengthen your decision-making process—because in Forex, every pip truly matters.

FAQs

The post What Is a Pip Calculator? Why Would You Need One? appeared first on SureShotFX.

What is a Pip in Forex Trading?

A pip, short for “percentage in point”, is the smallest standardized unit of price movement in a Foreign currency pair. It measures how much a currency quote changes — for instance, when EUR/USD moves from 1.1000 to 1.1001, that 0.0001 difference equals one pip.

Whether you’re trading EUR/USD, GBP/JPY, or any other pair, understanding pips is essential to making sense of how money moves in the forex market. Simply put, a pip is the smallest whole-unit price move an exchange rate can make, according to market convention.

How Do Pips Work in Forex?

In Forex, Pips represent the price movement in a currency pair, showing how much a pair’s value has changed. They are essential for measuring market fluctuations, profits, and losses.

In most currency pairs, a pip is the fourth decimal place (0.0001), except for pairs involving the Japanese Yen, where it’s the second decimal place (0.01).

Traders use pips to:

• Determine market movement
• Calculate monetary gains or losses
• Manage risk effectively

Understanding how pips work helps traders make precise, data-driven trading decisions and manage risk effectively.

Why Are Pips Important in Forex Trading?

Understanding pips allows traders to manage risk more efficiently and make smarter, data-driven trading decisions. Every profit or loss in a trade is expressed in pips, making them the foundation of trade analysis and strategy.

By tracking pip movements, traders can assess how much a currency pair has shifted, calculate their potential earnings or losses, and set effective stop-loss and take-profit levels. Pips are more than just numbers on a chart — they are the universal language of trading.

How to Calculate Pips in Forex (Step-by-Step)

To calculate the value of a pip, you need the pip size, the trade size (units or lots), and the account currency. Once you have these, you can find out how much each pip is worth, which helps you manage your risk and plan your trades.

Here are the steps to calculate pip value easily:

Step 1: Identify the Pip Size

The first step is to identify the pip size for the currency pair you are trading.

• For most pairs like EUR/USD or GBP/USD, 1 pip = 0.0001
• For pairs involving the Japanese Yen, like USD/JPY or EUR/JPY, 1 pip = 0.01
• Some brokers quote fractional pips (pipettes), which are 1/10 of a pip (e.g., 0.00001 for EUR/USD)

Step 2: Determine Your Trade Size

Your trade size directly affects pip value:

• 1 Standard Lot = 100,000 units
• 1 Mini Lot = 10,000 units
• 1 Micro Lot = 1,000 units

The larger the trade size, the greater the value of each pip.

Step 3: Check Your Account Currency

If your account is in the same currency as the quote currency (the second currency in the pair), no conversion is needed. If your account is in a different currency, you’ll need the current exchange rate to convert the pip value into your account currency.

Step 4: Use Formula to calculate Pip Profit

The value of each pip in Forex depends on the volume you trade (lot size) and the exchange rate. In a standard account, one pip is typically equivalent to 10 USD, but in mini or micro accounts, this figure can decrease to a few dollars or even a few cents.

Additionally, in currency pairs with lower rates or more decimal places, such as those involving the Japanese Yen, the pip value is calculated slightly differently.

The general formula for pip value calculation is as follows:

Examples of How to Calculate Pip Profit

Let’s break it down with a real trading scenario to make pip calculation easier to understand.

Scenario:

• Pair: EUR/USD
• Lot Size: 1 standard lot = 100,000 units
• Entry Price: 1.2000
• Exit Price: 1.2055
• Account Currency: USD

✅ In this example, a 50-pip movement resulted in a $500 profit.

Why Use Pip Calculator in Forex Trading?

Understanding pips is essential, but calculating their value manually can be tricky — especially when dealing with different currency pairs, lot sizes, or fractional pips (pipettes). That’s why most traders rely on a Forex pip calculator to simplify the process.

Key Benefits of Using a Pip Calculator:

• Fast and Accurate Calculations: Instantly determine pip values without manual formulas.
• Supports All Currency Pairs: Works for major, minor, and exotic pairs, including JPY pairs.
• Handles Different Lot Sizes: Automatically calculates pip value for Standard, Mini, and Micro lots.
• Reduces Errors: Minimizes mistakes that can occur with manual calculation.
• Better Risk Management: Helps traders set precise stop-loss and take-profit levels.
• Beginner-Friendly: Makes pip and profit calculations easy for new traders.

By using an FX pip calculator, traders can focus on strategy and market analysis rather than spending time on calculations. It’s a practical tool for both beginners and experienced traders who want accurate results quickly.

What is the Best Forex Pip Calculator?

Most Forex traders consider SureShotFX Pip Calculator for their daily pip calculations. This Pip Calculator app has a 4.5★ rating with 119 reviews and over 10,000 downloads on the Google Play Store, reflecting its popularity and reliability.

With this tool, traders can plan trades, manage risk, and calculate potential profits confidently, whether on desktop or mobile.

Traders use SureShotFX Free Pip Calculator directly from the website or simply download SureShotFX Free Pip Calculator App Google Play Store or Apple APP Store for quick access on mobile devices.

Why Traders Prefer SureShotFX Pip Calculator:

• Instant Calculations: Quickly find pip values and profit estimates.
• Supports All Currency Pairs: Works for major, minor, and JPY pairs, including fractional pips (pipettes).
• Automatic Account Currency Conversion: Converts pip value directly into your trading account currency.
• Flexible Lot Size Options: Works for Standard, Mini, and Micro lots.
• User-Friendly Interface: Easy for beginners and experienced traders alike.
• Completely Free: No signup required, providing accurate results instantly.

Using the SureShotFX Free Pip Calculator ensures accurate pip calculations, better risk management, and faster trade planning — a must-have tool for every Forex trader.

Conclusion

By mastering pip calculations, traders can make smarter, more controlled decisions, manage risk effectively, and understand the true financial impact of each trade. Whether you use manual formulas or tools like the SureShotFX Pip Calculator, understanding pips will always be a cornerstone of professional Forex trading.

The next time you plan a trade, don’t just focus on price — focus on pips, because every movement, no matter how small, adds up to your long-term success.

FAQ

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What is a Forex Pair?

A Forex pair is a combination of 2 different foreign currencies used in the Forex market for trading. In Forex trading, currencies are always traded in pairs. And every currency pair has a symbol or symbolic name for easy identification.

The first currency of a currency pair is called the base currency, and the second currency is called the quote currency. While trading currencies, you either buy the base currency and sell the quote currency or vice versa.

For example, GBP/USD is a currency pair where GBP (British Pound) is the base currency and the USD (US Dollar) is the quote currency.

Each pair works as a single unit. And you can profit or lose from the price fluctuations of the exchange rates between those currencies.

Different Types of Forex Pairs- Majors, Minors, and Exotics

There are mainly 3 types of Foreign currency pairs based on liquidity and USD involvement. They are-

1. Major Currency Pairs- Most Traded Pairs

These are the pairs always including the USD (US Dollar), best known for high liquidity. These are the best forex pairs for beginners. However, professional advanced traders also trade on these currency pairs.

There are mainly 7 major currencies, and when making a pair, they come with USD, such as- the British pound (GBP/USD), Euro (EUR/USD), Australian dollar (AUD/USD), Japanese yen (USD/JPY), Swiss franc (USD/CHF), New Zealand Dollar (NZD/USD), and Canadian Dollar (USD/CAD).

2. Minor Currency Pairs- Best for Institutional Traders

These are the Forex pairs without any USD (US Dollar). Minor pairs are created by combining 2 major pairs except USD, such as EURGBP (Euro/British pound), EURCHF (Euro/Swiss Franc), GBPJPY (British pound/Japanese Yen), etc.

Due to comparatively higher spreads, like 1 to 2 pips movement, most of the institutional professionals and hedgers trade on these minor pairs.

3. Exotic Currency Pairs- Lower Liquidity, Higher Spreads

These are the pairs combining one major currency with another from a developing or less-traded country. Such as EUR/TRY (euro/Turkish lira), USD/TRY (US dollar/Turkish lira), African Rand (USD/ZAR), etc.

Traders rarely trade on exotic pairs due to higher spreads and low liquidity pools. And most often, trading exotic pairs leads to improper order fills, causing huge losses sometimes.

Note: Beginner traders without any trading and market knowledge sometimes seem to trade exotic pairs, making one of the biggest mistakes in their trading journey.

What Makes a Forex Pair “Best” to Trade?

Active trading sessions, lower spreads, and higher liquidity make a pair the best to trade in Forex. Let’s break them down how:

Liquidity

The Forex market itself is the largest liquid market. But there are around 180 currencies. And liquidity differs a little bit among these pairs. Gold (XAU) and USD have the highest liquidity pool, making them the best Forex currencies.

As we know, higher liquidity means higher opportunity. If you trade a pair with higher liquid assets, you can enter/exit trades, avoiding slippage. So, make sure to trade the pairs with the most liquidity across all the sessions.

Trading Session

The trading session, or time of trading, is crucial to finding the best pair to trade. Peak trading time is different for different trading sessions.

For example, the minor currencies like the NZDJPY or AUDJPY are the best for trading in the Asian session, whereas GBPUSD is best for trading in the London session.

Volatility

Volatility comes from the pip movement in the Forex market. Some forex pairs are stable with lower volatility with fewer pip movements, and some are not stable and highly volatile with higher pip movements.

For example, USD is the most stable currency with higher liquidity. Contrarily, exotic pairs are mostly volatile and nearly impossible to predict, with larger pip movements increasing the spreads.

Top 5 Best Forex Pairs to Trade in 2025

EUR/USD, GBP/USD, AUD/USD, USD/JPY, and USD/CHF are the best Forex currency pairs to trade in 2025. So, mainly the best pairs. These Forex pairs are also the most traded in the Forex market.

1. EUR/USD (Euro vs US Dollar)

EURUSD is the most traded Forex pair in the world. Nickname for this pair is FIber. It has higher liquidity, as the currencies in this pair represent the two largest economies. This pair is best for trading during the London and New York sessions.

According to the BestBroker report, the EUR/USD pair has recorded a total of $1.71 trillion in daily trade volume, which represents a 7.6% increase.

And August 2025 data shows the EURO alone holds 20.6% trade dominance in the Forex market, which makes it the most traded Forex pair.

Changes in the currency value of the Euro and USD can influence the volatility of this pair. Besides, European Central Bank (ECB) policies and US Fed announcements can impact the volatility.

2. GBP/USD (British Pound vs US Dollar)

Here comes another best Forex pair to trade, especially during the London and overlap sessions.

Pound is known to be the oldest currency and seems to be traded with more than 100+ pips daily. It’s said to be ideal for trend or breakout strategies, but beware of higher spreads during UK news.

3. AUD/USD (Australian Dollar vs US Dollar)

Nicknamed “Aussie,” this pair is one of the best-traded pairs. This pair often seems to be influenced by the commodity price changes, particularly Gold (XAU) and China’s demand.

This pair is best to trade during the Asia and US overlap sessions. However, news from the US, Australia, and even China can sharply move the prices.

4. USD/JPY (US Dollar vs Japanese Yen)

This Forex pair is also known as the Yen pair, and its nickname is Gopher. The USDJPY pair is active during the Asian sessions. So, trading USDJPY in the Asian and NY sessions gives more flexible trading windows.

US data, events, and announcements from the Bank of Japan influence the volatility of this currency pair. Technically, this pair shows large pip movement. But with proper risk setups and trading strategies, trading the USDJPY pair can be profitable too.

5. USD/CHF (US Dollar vs Swiss Franc)

The nickname for this currency pair is the Swissie or Swiss Franc. This Forex pair is often considered the safe-haven pair, so it is ideal for hedging and institutional professionals. 

The London session is the best for trading the UCHF pair. However, the London-New York overlap session is also the best time to trade the Swissie pair.

The Swissie pair is also known for the lowest interest rate worldwide after the Swiss National Bank interest announcements, making this pair a safe haven and one of the best pairs for carry trading and hedging.

Most Profitable Forex Pairs

Major Forex pairs tend to be the most profitable currency pairs. Profitability depends on trader behavior and trading styles. So, if your goal is to find a profitable Forex pair, you need to have at least a medium to experienced level of trading experience in the forex market and knowledge of the forex pairs.

Though profitability depends on the trader, major Forex pairs, which means the pairs with the USD (US Dollar), are considered to be the most profitable currency pairs.  

Among these, EURUSD, GBPUSD, and USDJPY are the most profitable due to higher liquidity and lower spreads.

Some other reasons include-

Most Traded Forex Pairs in 2025

As of Q2 2025, EUR/USD, GBP/USD, and USD/JPY remain the top traded pairs globally. The table below shows the most traded currency pairs for different Forex markets.

In the UK Forex market, EUR/USD remained the most traded Forex pair, exceeding $1 trillion daily trade volume, which was $797.5 billion in 2024.

In the US market, the same EUR/USD was ranked as the most traded pair with $296.4 billion of daily trade volume, which was $239.8 billion on average in 2024.

The Singapore Foreign Exchange Market Committee (SFXMC) shows that USD/JPY was the most traded Forex pair in Q2, 2025, with $5.7 trillion daily trade volume, which was $6 trillion in October, 2024.

The Hong Kong Forex Market has seen USD/RMB (US Dollar vs Chinese Yuan Renminbi) to be the top-performing currency pair in 2025, along with USD/HKD (USD vs Hong Kong Dollar) and USD/JPY.

The Tokyo Foreign Exchange Market Committee (TFEMC) reveals that USD/JPY was the most traded pair in Japan in April 2025, with a daily trade volume of $284.7 billion on average. And it’s a 51% cruise from the 2024 daily trade volume.

Which Forex Pairs Are Best for Different Trading Styles?

Scalpers prefer USD/JPY and NZD/USD; day traders favor EUR/USD; swing traders go for major pairs; position traders use USD/CAD and EUR/CHF. Besides, based on different trading styles and market movements, you can trade different Forex pairs. That’s why choosing the best Forex pair depends on when and how you are trading.

Here is the breakdown for different trading styles:

Best Forex Pairs for Scalping

Though for scalping, gold (XAUUSD) is considered the best pair for scalping. But for Forex pairs, USD/JPY and NZD/USD are the best Forex pairs for scalping-style trading.

Scalpers typically use 1- to 15-minute timeframes. Their trading style is mainly pip-focused. So, scalpers prioritize technical analysis over fundamentals. Beginners in scalping or experienced professionals trade USDJPY and USDNZD for scalping.

Best Forex Pairs for Day Trading

USDJPY, EURUSD, and AUDUSD are the best Forex pairs for day trading. Day traders, or intraday traders, mainly trade Forex, focusing on the trade sessions.

Trading these pairs during the London and New York sessions can ensure the best profits from these pairs. For beginners, EURUSD is the best pair for a day trading style, and for professionals, GBP or JPY is the best. Besides, SSF day trading signals can be profitable for beginner Forex traders.

Best Forex Pairs for Swing Trading

For swing trading, choosing the major pairs works best for any type of trader. However, the swing trading style does not need session focus. Unlike scalping, swing traders mostly use 1H (hour) to 4H timeframes.

Most of the professional traders trade the major Forex pairs, and recent data shows that many beginner retail traders trade minor pairs for swing trading styles.

Best Forex Pairs for Position Trading

Position trading requires holding trades for weeks to even months. So, highly volatile pairs are not suitable for this trading style. Beginners don’t usually do position trading.

Mostly highly professional traders, advanced traders, or professional hedgers or speculators from Banks and Financial Institutions (BFI) use position trading for portfolio management and hedging.

Position traders choose pairs based on their strategies, fundamental analysis, and institutional data. So, technical analysis or volatility shifts don’t matter much for position traders.

However, USDCAD, EURCHF are known to be the best currency pairs for position trading.

How to Choose Profitable Forex Pairs?

Major news events, geopolitical news, and trade sessions must be considered to choose profitable currency pairs. No matter if you are a beginner or an advanced professional trader, the following factors are a must to consider when you choose the pair for trading:

• Trade Sessions & Your Time Zone
The time zone from where you are trading is crucial to picking the profitable Forex pairs. For example, you live in London. So, according to your time zone, trading GBPUSD will be the most profitable pair for you to trade.

Besides, trading during the overlap sessions is best for the major pairs.

• Central Bank Divergence & Interest Rate Gaps
Different announcements from the central bank and interest rate decisions can shift the market volatility. So, based on your regional news events, make sure to pick the best currency pair.

• Commodity Linkages
AUD, CAD, and NZD pairs are largely influenced by commodity price changes, such as oil, gold, etc. So, make sure to check the news or price changes while trading these pairs.

• Geopolitical Events
Sudden events like the Ukraine-Russia critical situation or the COVID-19 pandemic, etc., can influence the market movement, causing volatility shifts. So, make sure to trade more carefully during such major geopolitical or economic events.

Tips to Choose the Best Forex Pair for You

Choosing the major pairs is the best and most evergreen tip. USD pairs are the most stable currency pairs for trading.

Such other expert advice is as follows

Final Words

Choosing the best Forex pairs to trade requires your trading skills and the trading session when you trade. Besides, to be in the safest zone is to trade the major pairs only for profitable trading.

However, solid risk management strategies, like using proper stop-loss and take profit, and never risking more than 1% of your total capital, are key to successful Forex trading.

Well, if you are a beginner and still learning Forex trading, you can try SureShotFX signals for profitable trades. With 99% accuracy and a previous performance record, SSF signals are making the edge among Forex traders, offering both free and paid VIP Forex signals.

For more information, contact the SSF support team, available 24/7 for you.

FAQs

The post Top 5 Best Forex Pairs to Trade for  Beginners in 2025 appeared first on SureShotFX.

• What a Forex currency pair is and how it works.
• How major, minor, and exotic currency pairs behave in the market.
• How to identify the best currency pairs to trade based on your trading style—whether you’re a day trader, scalper, or swing trader.

By the end of the blog, you’ll have a clear understanding of foreign currency pairs and be ready to choose the right currency trading pairs for your Forex trading strategy.

What is a Currency Pair in Forex Trading?

A currency pair is the quotation of two different currencies, showing how much of one currency is required to buy one unit of another. In Forex trading, currencies are always traded in pairs because every trade involves buying one currency while simultaneously selling another.

This currency pairing system allows traders to profit from fluctuations in currency values by predicting whether a currency will strengthen or weaken against another.

A currency pair is presented as a symbol of a three-letter currency code set by ISO. This pair symbol mainly defines three essential components:

• Base Currency: The first currency in the pair.
• Quote Currency: The second currency in the pair.
• Exchange Rate: The value at which the base currency can be exchanged for the quote currency.

For example, you are trading the EUR/USD currency pair.

• EUR (Euro) is the base currency
• USD (US Dollar) is the quote currency 
• The Exchange Rate depends on the market trend. If EUR/USD = 1.10, buying 1 Euro requires 1.10 U.S. Dollars.

If the price rises to 1.12, the Euro strengthens against the Dollar. If the price falls to 1.08, the Euro weakens against the Dollar. Understanding these movements helps traders anticipate potential profits or losses depending on market direction.

Why Currency Pairs Are Important in Forex Trading?

Foreign currency pairs are important because they provide the framework for comparing the value of one currency against another, enabling speculation on exchange rate fluctuations. No currency is traded in isolation; every transaction involves simultaneously buying one currency and selling another.

Here are some key benefits of trading currency pairs:

• Profit from price fluctuations: Every Forex trade involves buying one currency while selling another, creating opportunities to earn from market movements.
• Access high liquidity markets: The Forex market trades over $7.5 trillion daily, making major currency pairs like EUR/USD highly liquid and easier to enter or exit.
• Diversify investment strategies: Traders can hedge risk by trading minor and exotic currency pairs, which behave differently from major pairs.
• Benefit from predictable patterns: Major currency pairs are often influenced by global economic data like GDP growth, interest rates, and employment reports, allowing for better analysis.

Difference Between Base Currency and Quote Currency

Every Forex currency pair consists of two currencies: the base currency and the quote currency. Understanding the difference between them is essential because it determines how trades are executed and how profits or losses are calculated.

Here is a clear comparison of base currency vs quote currency:

What are Major Currency Pairs in Forex?

Major currency pairs are the most traded currency pairs in the foreign exchange (Forex) market. These pairs always include the U.S. Dollar (USD) on one side, paired with another leading global currency such as the Euro, British Pound, or Japanese Yen.

They dominate the Forex market due to high liquidity, tight spreads, and predictable price movements, making them ideal for both beginners and professional traders. There are 7 major currency pairs in Forex trading. These pairs represent the world’s largest economies and account for the majority of daily Forex transactions.

Here are the 7 most popular major currency pairs:

Pro Tip: Beginners often start with EUR/USD because it is highly liquid and has predictable movements.

Why Do Traders Choose Major Currency Pairs?

Due to higher liquidity and stable market trends, most of the traders, either beginners or professionals, prefer major forex pairs. Besides, major pairs or the USD pairs offer lower spreads, causing less trade slippage.

Here are some key characteristics of the Forex Major Pairs:

• High Liquidity: Major pairs are easily bought and sold without significantly affecting prices.
• Tight Spreads: The difference between buy and sell prices is small, leading to lower trading costs.
• Influenced by Economic Data: Their rates are highly responsive to factors like interest rates, economic growth (GDP), inflation, and unemployment reports.
• Sensitive to Global Trends: As global reserve currencies, their movements often align with worldwide economic patterns.
• High Trading Volume: The most traded pair, EUR/USD, involves the Eurozone and the US, two of the largest Western economies.
• Less Susceptible to Manipulation: Due to large trading volumes, major currency pairs are less prone to manipulation.

What are Minor Currency Pairs in Forex?

Forex minor currency pairs are currency pairs that do not include the U.S. Dollar (USD). Instead of the USD, these pairs consist of two other major currencies,  such as the Euro (EUR), British Pound (GBP), Japanese Yen (JPY), or Swiss Franc (CHF). They are also known as cross-currency pairs or simply “crosses.”

These pairs offer attractive trading opportunities, especially for traders looking to diversify away from USD-centric trades. However, they are generally less liquid than major pairs and come with slightly wider spreads, meaning trading costs can be higher. There are 28 commonly traded minor currency pairs in the Forex market.

Here are the most popular Forex Minor currency pairs:

Pro Tip: Traders often focus on EUR/GBP and GBP/JPY to capture medium volatility moves influenced by regional economic trends such as ECB policies or UK market news. Due to being traded the most among minor pairs,  EUR/GBP and GBP/JPY are nicknamed “Chunnel” and “Guppy,” respectively.

Why Do Traders Choose Forex Minor Currency Pairings?

Traders choose minor currency pairs (cross pairs) to diversify beyond the U.S. Dollar and capture opportunities in global markets. While they are less liquid than majors, they offer unique benefits.

Here are some key characteristics of the Forex Minor Pairs:

• Diversification from the USD: Minor pairs reduce reliance on U.S. economic news by offering opportunities in other economies (e.g., EUR/JPY reflects Europe vs. Japan).
• Moderate Volatility: Minors are more volatile than majors but less extreme than exotics, offering a balanced risk-reward profile.
• Regional Trading Opportunities: Events in Europe, the UK, or Japan can create profitable setups that don’t depend on the U.S. market.
• Higher Potential Swings: Wider price movements can lead to more significant profit opportunities for skilled traders.

List of 28 Minor Pairs in Forex

1. EUR/GBP
2. EUR/CHF
3. EUR/JPY
4. EUR/AUD
5. EUR/CAD
6. EUR/NZD
7. GBP/CHF
8. GBP/JPY
9. GBP/AUD
10. GBP/CAD
11. GBP/NZD
12. CHF/JPY
13. AUD/JPY
14. AUD/CHF
15. AUD/CAD
16. AUD/NZD
17. CAD/JPY
18. CAD/CHF
19. NZD/JPY
20. NZD/CHF
21. EUR/SEK
22. EUR/NOK
23. EUR/DKK
24. GBP/SEK
25. GBP/NOK
26. CHF/SEK
27. AUD/SGD
28. SGD/JPY

What are Exotic Currency Pairs in Forex?

Exotic currency pairs combine one major currency (such as USD, EUR, or GBP) with the currency of a smaller or emerging economy (such as Turkey, Mexico, or South Africa). Examples include USD/TRY (U.S. Dollar / Turkish Lira) or USD/ZAR (U.S. Dollar / South African Rand).

Exotics are less liquid, more volatile, and carry wider spreads compared to majors and minors. They are usually traded by experienced traders who are comfortable with higher risk. There are about 25 commonly traded exotic currency pairs in the Forex market.

Here are some of the most popular Forex exotic currency pairs:

Pro Tip: Exotic pairs can deliver large price swings, but they require caution. Traders should always manage risk carefully due to low liquidity and unpredictable market behavior.

Why Do Traders Choose Forex Exotic Currency Pairings?

Traders choose exotic forex currency pairings to potentially profit from higher volatility, unique trading opportunities influenced by emerging market dynamics, and portfolio diversification. Exotics are not for everyone, but traders who seek high-risk and high-reward opportunities often turn to them.

Here are some key characteristics of the Exotic Pairs:

• Higher Volatility: Exotic pairs can experience significant price swings, creating opportunities for traders to profit from large fluctuations. 
• Unique Trading Opportunities: These pairs offer chances to trade on the specific political and economic events of emerging markets, which can be distinct from those affecting major economies. 
• Portfolio Diversification: By including exotic currency pairs, traders can diversify their portfolios beyond more common major and minor pairs, potentially reducing overall risk. 
• Potential for High Returns: The combination of higher volatility and unique market dynamics can translate into greater profit potential compared to less volatile pairs.

List of 25 Exotic Pairs in Forex

1. USD/TRY
2. USD/ZAR
3. USD/MXN
4. USD/HKD
5. USD/SGD
6. USD/SEK
7. USD/NOK
8. USD/DKK
9. USD/CZK
10. USD/HUF
11. USD/PLN
12. USD/THB
13. USD/IDR
14. USD/MYR
15. USD/PHP
16. USD/KRW
17. EUR/TRY
18. EUR/ZAR
19. EUR/SEK
20. EUR/NOK
21. GBP/ZAR
22. GBP/SEK
23. GBP/NOK
24. AUD/SGD
25. JPY/SGD

Major Currency vs. Minor Currency vs. Exotic Currency

To understand which pairs suit your trading style, here’s a side-by-side comparison:

How to Choose the Best Forex Currency Pairs for Trading?

Choosing the right Forex currency pair depends on your experience level, trading style, and risk tolerance. Not all pairs are suitable for every trader. Here’s how to decide:

If You’re a Beginner:

Beginners should focus on major currency pairs because they are highly liquid, predictable, and have lower spreads. Forex pairs are the most stable currency pairs with easy market access.

The most traded pair in the world, EUR/USD, is often the best starting point because it has plenty of market analysis available, and its movements are relatively stable. However, beginners are highly suggested not to start with exotic pairs.

Best Currency Pairs for Beginners:

• EUR/USD (Euro / U.S. Dollar)
• GBP/USD (British Pound / U.S. Dollar)
• USD/JPY (U.S. Dollar / Japanese Yen)

Why Beginners Should Choose Major Currency Pairs?

• Easy to analyze with plenty of educational resources.
• Tight spreads mean lower trading costs.
• Less volatile compared to minor and exotic pairs.

Pro Tip: Stick to one or two pairs at first. Master their behavior before expanding your trading portfolio.

If You’re Intermediate:

Either beginner or intermediate level of traders, it’s always encourtaged to trade the major pairs for profitable trading.

However, Intermediate traders can explore minor (cross) pairs to diversify away from USD-centric trades and take advantage of moderate volatility. Cross pairs like EUR/GBP or GBP/JPY offer attractive swings and are influenced by regional events.

Best Currency Pairs for Intermediate Traders:

• EUR/GBP (Euro / British Pound)
• EUR/JPY (Euro / Japanese Yen)
• GBP/JPY (British Pound / Japanese Yen)
• AUD/JPY (Australian Dollar / Japanese Yen)

Why Intermediate Traders Should Choose Minor Currency Pairs?

• Offer higher volatility and profit potential than majors.
• Allow exposure to different economies beyond the U.S.
• Help develop more advanced trading strategies like correlation trading.

Pro Tip: Keep an eye on regional economic news such as Bank of England or ECB rate decisions. These often drive minor pairs more than global news.

If You’re Advanced:

If your goal is portfolio diversification or speculation for institutional trading, you can trade exotic currency pairs. These pairs provide high volatility and big price swings, but they come with wider spreads and unpredictable market trends.

Best Currency Pairs for Advanced Traders:

• USD/TRY (U.S. Dollar / Turkish Lira)
• USD/ZAR (U.S. Dollar / South African Rand)
• USD/MXN (U.S. Dollar / Mexican Peso)
• EUR/TRY (Euro / Turkish Lira)

Why Advanced Traders Should Choose Exotic Currency Pairs?

• Large movements can generate substantial profits in short timeframes.
• Provide access to emerging market currencies.
• Ideal for traders who can manage volatility and use advanced tools like hedging or algorithmic trading.

Pro Tip: Always use tight stop losses when trading exotics. Sudden political or economic shocks can cause massive swings.

How to trade Foreign Currency Pairs in 2025?

Trading currency pairs means buying one currency while selling another to profit from price changes. If you’re new or unsure where to start, SureShotFX makes trading much easier by providing entry, stop-loss, and take-profit levels.

Even better, Telegram Signal Copier (TSC) can automatically execute these signals in your MT4/MT5 account, saving you time and reducing mistakes.

Here’s a step-by-step guide to help you trade Forex pairs effectively:

• Learn How to Read a Currency Pair: Understand which currency is the base and which is the quote. This helps you interpret price movements accurately.
• Choose Your Currency Pair: Pick the pair that fits your trading strategy, whether it’s a major, cross, or exotic pair. But if you can’t decide which pair you should trade, then SureShotFX signals guide you with top-performing pairs.
• Decide on a Trading Style: Determine whether you want to trade scalping, day trading, swing trading, or long-term positions.
• Analyze the Market: Use technical analysis, fundamental analysis, or a combination to find potential trading opportunities.
• Place a Trade: Enter your position based on your analysis and the signals you follow, setting proper stop-loss and take-profit levels.
• Manage Risk: Decide the trade size and ensure it aligns with your risk tolerance to protect your capital.
• Monitor and Exit the Trade: Track your trade’s progress and close it manually if needed, or let the signals and TSC handle it automatically.

Conclusion:

Understanding foreign currency pairs is essential for building a strong foundation in Forex trading. By knowing the differences between majors, minors, and exotics, you can choose the right pairs to match your trading style—whether day trading, scalping, or swing trading.

Start with majors, explore minors as you gain experience, and venture into exotics only when confident in your risk management skills.

Ready to trade the best currency pairs today? Start profitable trades with SureShotFX!

FAQs

The post What are Foreign Currency Pairs? Majors, Minors, and Exotics appeared first on SureShotFX.

If you make any profit, your free margin increases and if you make losses, your free margin decreases. 

The amount of money you have in your trading account is your account balance. If you don’t have any open positions or trades, that means your equity is the same as your trading balance. 

Now if you have an open position, the available amount which you can use to open new positions in the market is called Free margin in Forex.

Let me explain with an example.

Example of free margin in forex

Let’s say you have a trading account with a balance of $1000. You don’t have any open trades or positions. Now we’ll calculate free margin.

Example 01:

1. First, let’s calculate equity.

Equity = Account balance + Profit/Loss

As you’re not trading currently and don’t have no open positions, your equity is 

Equity = $1000 + $0 = $1000

So the equity is the same as the account balance.

2. Now let’s calculate free margin

Free Margin = Equity – Used Margin

You don’t have any open positions which means you haven’t used any margin yet.

So your free margin is 

Free margin = $1000 – $0 = $1000

Example 02:

Now you decided to start trading with your $1000 account balance.

You opened a 1 mini lot position with 5% required margin.

1. Your  Required Margin = Notional Value x Margin Requirement = $10,000 x .04

2. Now you have opened a position in the market. Your required margin is your used margin.
   
3. Now your equity is 

Equity = Account balance + Profit/Loss = $1,000 + $0 = $1000

4. Now let’s calculate free margin

Free Margin = Equity – Used Margin = $1000 – $400 = $600

We also need to note that the profit and loss from the current open positions can also impact free margin in forex. 

In this article, we’ve covered what is free margin level in forex and how you can calculate it easily. As a new trader, it is really important to know some major concepts of Forex. Free margin in Forex trading is a very significant concept. It is important to understand the concept of margin levels when you’re trading volatile markets like Forex. 

Learn more by watching this YouTube Video:

The post What is Free Margin Level in Forex Trading? appeared first on SureShotFX.

Every trader should use SL & TP to manage their positions and create a profitable trading strategy. It is one of the crucial strategies for traders. In this article, today we’ll be discussing what is SL and TP in forex, what are the benefits of using them, and how to use them.

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What is SL in Forex?

A stop loss is an order that closes your open position automatically when the price reaches a certain position. It indicates how much risk you’re willing to take per trade and helps you minimize your losses. It’s a market order that acts as a safety net, preventing further losses beyond a predetermined point.

Advantages of SL in Forex:

• Minimize Losses: Stop loss allows you to minimize your losses.
• Reduce Stress: Eliminates the stress of looking at charts all the time to close the order.
• Encourages Discipline: Helps traders to stick to their predefined risk management rules.
• Manages Risk: Helps in managing risk and maintaining a favorable risk-to-reward ratio.
• Allows Automation: Enables automated trade management, reducing the need for constant monitoring.

Common Mistakes to avoid while using SL:

• Not Using SL: Leads to uncontrolled losses.
• Wrong SL Placement: Setting stop losses at a random level without any market analysis or strategic basis.
• Ignoring Market Volatility: Adjusting SL overlooks volatility in the current market situation.
• Emotional Decision-Making: Letting emotions dictate SL adjustments.
• Not Considering Spread: Causes unexpected stop-loss triggers.

How to Use SL in Forex?

Successful professional traders believe that if you want to be successful and consistent in Forex trading, you must first learn how to minimize your losses. Stop loss is a major weapon for traders to cut their losses in the long run. As a trader, it is very important to know when to exit before entering the market.

Stop loss helps you to cut losses and protects your account from more losses. There are 3 types of Stop Loss order types:

1. Percentage Stop:

Percentage stop loss is the percentage of your trading balance you’re willing to risk per trade. Let’s say you have a trading balance of $5000. You’re ready to risk 2%. Your broker will understand and set your stop accordingly.

2. Chart Stop:

Chart stop is one of the most popular stop-loss orders. You would need technical knowledge to do analysis. You can also use support and resistance levels to determine the stop-loss and take-profit levels.

3. Volatility Stop:

Volatility measures how the price of a currency changes. As a trader, everyone wants to take advantage of the market volatility. Now you can decide how you would like to leverage this. 

What is TP in Forex?

A trade profit is an order when you want to close your order in profit. It indicates that you’ve achieved your profit target and want to exit the market. It is an exit order designed to lock in gains once your trade reaches a predetermined profit target.

It also allows you to exit the market at a point where you have achieved your desired profit without having to actively monitor the trade.

Advantages of TP in Forex:

• Secures Profits: Locks in gains by automatically closing a trade at a desired profit level.
• Ensures Discipline: Helps maintain trading discipline by adhering to profit targets.
• Prevents Greed: Mitigates the risk of losing profits by setting clear exit points.
• Simplifies Trade Management: Reduces the need for constant monitoring of positions.
• Facilitates Strategy Execution: assists in executing trading strategies by adhering to predefined profit goals.

Common Mistakes to avoid while using TP:

• Not Using TP: Leads to losing profitable trades if the market reverses.
• Setting Unrealistic Targets: Placing TP levels too high or too low without considering market conditions.
• Ignoring Market Trends: Failing to adjust TP according to prevailing market trends and volatility.
• Not Updating TP Levels: Leaving TP levels unchanged despite evolving market scenarios.
• Overlooking Risk-Reward Ratio: Not balancing TP with the risk taken on the trade.
• Letting Emotions Influence TP: Allowing emotions to dictate changes in TP levels rather than sticking to the plan.

How to Use TP in Forex?

The Forex market is very unpredictable, and it always fluctuates. You need to take a profit at the right time before your trade goes against your prediction. To secure your profits, you can use various technical analysis tools:

1. Bollinger Bands:

Bollinger bands are a volatility indicator that consists of a middle band (the moving average) and two outer bands (standard deviations from the moving average). They help you gauge price volatility and potential reversal points.

2. Relative Strength Index (RSI):

Relative Strength Index is a momentum oscillator that gauges the speed and change of price movements. RSI reaches from 0 to 100 and is commonly used to detect overbought or oversold conditions.

3. Average Directional Index (ADX): 

Average Directional Index measures the strength of a trend to help traders determine whether the market is trending or ranging. It consists of three lines: ADX, Plus DI, and Minus DI.

Stop Loss vs. Take Profit: Key Differences

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Conclusion:

As a trader, the most important task is to secure your capital and minimize losses. Using SL and TP allows you to achieve your trading goals. Start practicing and incorporating SL and TP in your trading strategy, but don’t forget to control your emotions while trading. Happy trading!

FAQs:

The post What Is SL and TP in Forex and How to Use It? appeared first on SureShotFX.

Well if you want a mini-heads up Forex trading involves exchanging one currency for another, whilst options trading is more like buying or selling contracts that you need to buy/sell an asset at a specific price.

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FOREX Trading:

Forex Trading or if we elaborate on this, we get foreign exchange trading, is the buying and selling of different currencies. Like when you exchange your dollar for euros while traveling to Europe, but this time with a much bulky amount.

In the Forex market, traders make profit by buying a currency at a lower price and trying to sell them at a much higher price. Let’s assume you bought a thousand 1 euro for 1.20 dollars and end up selling them when the rate goes up to 1.25, you will make a profit of $5 (100×0.05). So what happens in the FOREX market is that here traders are predicting whether a currency will go up or down in terms of the opposite currency. For example, let’s say the euro will get stronger against the Japanese yen; you buy Euros with yen. If the euro’s value goes up, you sell the yen back for dollars and make a profit.

Options Trading

Now if we move forward to options trading, here the process is a tad bit different. This involves buying and selling assets which you have full authority over. But here is the catch. You can only buy or sell assets at a specific price before a certain date. And these are the contacts known as options, which have two subcategories, categories i.e call options and put options. Each gives you an advantage of setting the price.

With call options you can have the right to buy an asset at a set price whilst the put option gives you the right to sell that asset at a set price. If we make an example to make things simple let’s assume you bought a call option for a stock of ABC Co. at $50. You paid a small fee for that option. Now, if the stock price rises to $60, you can buy it at $50 and then sell it at $60, eventually making profit. And now you may be wondering what if the price doesn’t rise above $50? In that case you lose only the fee that you paid for the option.

And What’s the Key Difference Between Options Vs Forex Trading?

So, you already know the basics of each. But still confused, which one should you go for? Well, sorry but there’s no one size fits all answer. Depending on your goals and risk the decision changes.

Market/Trading Hours:

As we already know, the forex market is open 24 hours, 5 days a week. No time limits for trading. But on the other hand, the options market has predefined hours, more specifically 9:30 AM to 4:00 PM EST.

Leverage

Forex trading has a higher leverage that allows you to control a large amount of currency with little investment. And this may seem like a bigger profit, but sometimes it turns into larger losses. Moving on to options trading, it also allows leverage, but here you can control a large number of shares with a small investment like a contract.

Risk and Reward

It’s a no-brainer that higher leverage equals higher risk. Forex trading, though can be profitable, it can lead to losses sometimes. On the other hand, options trading limits your risk to the amount you actually paid for. But here’s a catch. Understanding different strategies can be a real deal.

Complexity

In forex trading, all you have to do is predict whether a price is going up or down. Pretty straightforward, right? But did you know options trading can be more complex with various strategies like straddles, strangles, and spreads?

Forex might be your champion if:

• If you can spend whole day keeping an eye on the market deals
• If you like things fast-paced and exciting

Options might be a better fit if:

• Calls and puts options give you some flexibility that the other one doesn’t have.
• Options contract has an expiration date, and you are okay with that.
• You prefer limited risk.

Forex Vs. Options Vs. Other Trades

Futures Trading

This is almost a twin of Forex minus the trade contracts for future delivery of financial instruments. As being alike of Forex, it can be very risky due to high leverage.

Stocks Trading

The name says it all that it involves buying and selling the shares of companies. Though it’s less risky, it requires a huge amount of capital.

Binary Options

Binary options can be a simple yet very risky option. All you need to do is to predict if the price will be above or below at a certain level within the prescribed time.

Which One Should You Go For?

Like previously mentioned, there’s no one-fit answer, but yes, if you want limited risk, options can be your one. But if you prefer high liquidity and 24/7 trading, go for Forex. And if you want no extremes, stocks will be yours.

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Conclusion

It’s a no-brainer that both Forex and Options have their own characteristics and benefits. Before picking one, make sure it aligns with your goals, risk tolerance, and capital. Whichever option you choose, try to invest little and continue learning. Happy Trading!

FAQ:

The post Forex Trading Vs. Options Trading: Which is Better for You? appeared first on SureShotFX.

This continuous market cycle allows traders to participate in Forex trading at any time during the workweek, but understanding the details of FX market hours is essential for success. Knowing when to trade, when the market is most active, and how to align your strategy with global Forex trading sessions can make a significant difference in your trading outcomes.

In this blog, we will dive deep into the best time to trade Forex and explore how the different Forex session times can impact your trading results. Whether you’re looking for high volatility or more relaxed trading conditions, aligning your strategy with the Forex market hours can be a game-changer. Let’s explore the Forex session times and the best hours to trade Forex.

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What are the Forex Market Hours?

Forex market trading hours are the periods during which the global foreign exchange market is open for trading. This is the time when traders and investors buy and sell currencies in the FX market to get profits. This market operates 24/5, from Sunday evening to Friday evening (in GMT time). 

The market is decentralized, meaning there is no central exchange. Instead, it consists of a network of global banks, financial institutions, brokers, and individual traders connected electronically. The Forex market operates across different time zones, with each major financial center—such as London, New York, Tokyo, and Sydney—having specific trading hours.

Understanding FX Market Hours:

Understanding Forex’s major sessions is crucial for traders to maximize trading opportunities and manage risk effectively. The Forex market is divided into four primary trading sessions, each driven by the opening of financial markets in key global regions. 

The four major Forex trading sessions are:

• London Session– 8:00 am GMT – 4:00 pm GMT
• New York Session– 1:00 pm GMT – 10:00 pm GMT
• Tokyo Session– 12:00 am GMT – 9:00 am GMT
• Sydney Session– 10:00 pm GMT – 7:00 am GMT

Each session has distinct characteristics and peak activity periods, influenced by regional market openings.

Specific Sessions and High-Volume Hours:

Let’s take a closer look at each session and the best time for Forex trading during these hours.

1. London Forex Trading Hours

The London session is one of the most important sessions in the Forex market, accounting for a significant portion of daily Forex currency trading times. This session overlaps with both the New York and Tokyo sessions, leading to high currency market volatility and trading volume.

The London session typically sees increased liquidity, especially for EUR/USD, GBP/USD, and USD/JPY currency pairs. Traders look for opportunities in the most volatile Forex pairs during this time, as major economic reports and news releases from Europe impact the market.

2. New York Session Forex Trading

The New York session is the second-largest Forex trading session and starts at 1 PM GMT, ending at 10 PM GMT. This session overlaps with the last few hours of the London session, which is typically when the market sees the most significant price movements. 

The New York session is critical for traders interested in trading the US dollar (USD) and other major currency pairs, like USD/JPY, EUR/USD, and GBP/USD. The overlap between the London and New York session Forex pairs (1:00 PM – 4:00 PM GMT) is ideal for trading USD pairs, especially during the New York session Forex news releases.

3. Tokyo Forex Trading Hours

The Tokyo session, running from 12:00 AM GMT to 9:00 AM GMT, is the first major trading session of the week. Although Tokyo experiences lower volatility compared to the London and New York sessions, it plays a crucial role in setting the tone for the market’s direction.

This session is especially relevant for those trading the Japanese Yen (JPY), as well as AUD/USD and NZD/USD pairs. The Asian session Forex time is heavily influenced by economic data from Japan, China, and other Pacific countries.

The Asian market time of opening allows traders to assess how the market reacts to news from these regions, which can influence price movements in the next session.

4. Sydney Forex Trading Hours

The Sydney session, from 10:00 PM GMT to 7:00 AM GMT, is one of the quieter sessions. Although it’s not as active as the other sessions, it sets the stage for the upcoming London session and provides opportunities for currency trading in pairs like AUD/USD and NZD/USD. While Sydney market hours are less volatile, the session may provide ideal conditions for traders who prefer slow-paced markets. The Sydney Forex session serves as a transition into the larger trading volumes of the next session.

Most Popular Forex Currencies:

The most widely traded currencies in the Forex market are the US Dollar (USD), Euro (EUR), Japanese Yen (JPY), British Pound (GBP), and Swiss Franc (CHF). These currencies are often paired with each other and traded against smaller currencies from emerging markets. The activity during each session is driven by these major currencies, and certain sessions are better for trading specific currency pairs. For instance, during the London session, you may find EUR/USD and GBP/USD pairs more active, while during the Tokyo session, USD/JPY and AUD/USD are commonly traded.

High Volume and Pricing Efficiency:

When two major trading sessions overlap, the Forex market experiences higher trading volumes and better price efficiency. The most notable overlap occurs between the London and New York sessions, which overlap for 3 hours from 1 PM GMT to 4 PM GMT. During this time, you can expect the highest forex currency volatility, increased liquidity, and more significant price movements in the Forex major currency pairs.

Traders often look to trade during these high-volume hours for the best opportunity to execute large trades with minimal slippage.

Which Forex Market Is Open 24 Hours?

The Forex market is open 24 hours, but the level of activity varies depending on the session. While the market itself doesn’t close, different trading sessions see fluctuating levels of volume and liquidity, impacting how easy or difficult it is to enter and exit trades.

The Forex market’s continuous nature is what makes it unique compared to other markets, allowing traders to react to global events and economic news as they happen.

When is the Best Time to Trade Forex?

The best time to trade currency depends on your trading style, strategy, and the currency pairs you want to trade. If you’re looking for higher Forex volatility and more significant price movements, the overlap between the London and New York sessions is ideal. During these times, the market is at its busiest, providing more trading opportunities.

However, if you prefer less FX volatility, you may want to focus on the Tokyo or Sydney sessions. These sessions tend to have lower price movements, which can be beneficial for traders who prefer slower-paced markets.

Best Time for Major Currency Pairs:

• EUR/USD, GBP/USD, USD/CHF: Best traded during the London-New York overlap (1 PM – 4 PM GMT).
• USD/JPY: Actively traded during both the Tokyo and New York sessions.
• AUD/USD, NZD/USD: Best traded during the Sydney and Tokyo sessions.

How to trade with Forex Market Time Zone:

To optimize your trading strategy, it’s essential to align your trading hours with the most active times for the most volatile currency pairs you’re focusing on. Understanding which session influences each currency pair allows you to plan your trades better. Using tools like a Forex market time zone converter or a Forex market volatility indicator will also help you track when major markets are open, how volatile they are, and how that aligns with your Forex weekend trading strategy.

How to Learn More about Forex Market Hours:

Learning about Forex Market Hours is essential for any trader who is looking to boost profits. While the FX market operates 24/5, not all hours offer the same opportunities.

Mastering the timings of different trading sessions helps you plan your trade around periods of high liquidity and volatility. Besides, trading during peak times, especially when major markets overlap, opens the door to increased market activity and better profit potential.  

Want to know more about Forex trading market hours? Then explore SureShotFX’s free course on Forex Market Hours to crack the trading session and start to trade like a pro.

Conclusion:

Understanding the Forex market hours and Forex session times is essential to productive trading. The market is open 24/5, but knowing the best times to trade Forex can help you navigate the high-volatility currency pairs and target your trades when liquidity is high. Align your trading strategy with these optimal trading windows to maximize your potential profits and reduce risk.

FAQs:

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