One of the most commonly used assets in binary options trading is the foreign exchange pairs. Good thing here is that many different currency pairs are available and thus, you will be able to choose one that you think you can handle with. Our advice is to take one currency pair which is really well-known such as EUR/USD. If you want to be really good at what you do, you need to understand the way those currencies work and how they trade to other currencies.
As for EUR/USD – it is the world most traded currency pair on all those traditional markets and this is why it is one of the primary currency pairs when it comes to binary options trading. The euro is one of the driving forces in the global economy simply because it is a single currency that representslots of countries. Thanks to this currency, most of the country members of EU terminated their previous currencies and adopted the “new” euro. Since this major change, the global economy has undergone some really enormous movement changes.
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The US dollar keeps its position over the ocean. Everyone knows that the American economy rules the world to some extent. For this currency pair – EUR/USD the EUR is called base currency and the dollar – counter currency. So the quoted rate is in relation to EUR. As soon as you start trading EUR/ USD binary options you will see that the value of EUR is compared to the value of USD.
In case you want to trade with such currency pairs it is important to understand the strength of each currency and the relevant economy. Both EU and USA are great contributors to the global economy and this is why this currency pair is so preferred and well-known.