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June 15th, 2003 11:24 AM #1 Why trade EURUSD?
The EURUSD exchange rate has been the focus of my trading for some time now and continues to occupy most of my trading day. There are three main reasons:
Liquidity - The Dollar and the Euro are the most traded currencies in the world. There is always an excellent competitive two-way market in the EURUSD. This is particularly important for managing risk.
Trends - The Euro is worth $1.17; sixteen months ago it was worth 86 cents. The trend has been gradually higher. It pauses but doesn't decline significantly. Traders call that a sustained, persistent trend. It's the most profitable trend to trade.
Volatility - The EURUSD daily price change is less than $1.00 most days. The range is usually between $1.25 and $2.00. There is enough volatility to trade and make money but not so much volatility that the money management becomes a problem.
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