Trading EUR/USD

What is EUR/USD?

EUR/USD is the world's most traded currency pair, representing nearly 23% of all daily forex volume. It pairs the two largest economies — the Eurozone and the United States — making it highly liquid with tight spreads.

Nickname: Fiber | Trading Hours: 24/5 (peak: London-New York overlap 13:00-16:00 GMT)

Key Price Drivers

Understanding what moves EUR/USD is essential for developing effective trading strategies:

• ECB and Fed monetary policy decisions
• Eurozone and US economic data releases
• Political stability in the EU
• Interest rate differentials

Who Should Trade EUR/USD?

How to Trade EUR/USD with a Broker

Most retail traders access EUR/USD through CFDs (Contracts for Difference), which let you speculate on price movements without owning the underlying asset. Here's what to look for:

1. Tight Spreads: Lower spreads reduce your trading costs on every position
2. Fast Execution: Critical for short-term strategies and volatile instruments
3. Risk Management Tools: Stop-loss orders, guaranteed stops, and negative balance protection
4. Platform Quality: Advanced charting, technical indicators, and mobile trading
5. Regulation: Always choose a broker regulated by a Tier-1 authority

Trading Strategies

Day Trading

Day trading EUR/USD involves opening and closing positions within the same trading day, capitalising on short-term price movements. Requires fast execution, tight spreads, and understanding of intraday patterns.

Swing Trading

Swing traders hold positions for days to weeks, capturing medium-term trends. This approach requires less screen time and can suit traders with other commitments.

Position Trading

Position traders take longer-term views, holding for weeks to months based on fundamental analysis and major trend identification.