When doing Forex, I think there are many people who are curious about which currency pair is easier to win. Especially if you are not used to trading yet, you will often worry. So I will explain which is better, the cross yen or the dollar straight.
What is a cross circle?
A cross-yen is an exchange rate against the yen other than the US dollar, such as the euro-yen, pound-yen, Australian dollar-yen, and Swiss franc-yen. The point here is that USD/JPY, which is the dollar yen, is excluded. The cross-yen exchange rate is calculated by multiplying the US dollar currency.
What is the dollar straight?
Dollar currency pairs that do not contain the yen are called dollar straights. This includes the Eurodollar and PoundDollar. The difference with the cross-yen is that the cross-yen is a currency pair against the yen, and the dollar straight is a currency pair that is not against the yen.
Which one is better?
Which is better, cross yen or dollar straight? In conclusion, either is fine. Both have their own characteristics and quirks, so I think it’s best to decide which one is better by actually doing it yourself. I will explain the characteristics of each price movement.
Features of dollar straight
First, I will explain the characteristics of the dollar straight. Dollar straight refers to EUR/USD and GBP/USD.
Stable price movement
The biggest feature of the dollar straight is the large trading volume. EUR/USD and GBP/USD boast the world’s top trading volume. Conversely, this means stability. Currencies involving the US dollar tend to fluctuate due to the large volume of transactions. Therefore, extreme trends are unlikely to occur, and it is difficult to make a big loss or make a big loss.
Price movements are straightforward
The dollar straight has a large trading volume, so it is characterized by less peculiarities in price movements. In addition, EUR/USD and GBP/USD boast the world’s top trading volume, so there is little impact on other currency pairs, so there are many cases where you don’t have to worry about relative movements. In other words, you only need to look at EUR/USD and GBP/USD, so it is recommended for those who are focused on one point.
Characteristics of the cross circle
On the other hand, the cross circle has the following characteristics.
tend to create trends
Compared to EUR/USD and GBP/USD, cross-yen trading volume is less. This means that it is susceptible to relative influence with other currency pairs and tends to create trends. Cross circles are recommended for trend followers. In particular, GBP/JPY moves well, so it is also called a speculative currency pair.
price movement is difficult
The cross-yen currency is characterized by calculating the dollar straight currency pair of the US dollar, which is the key currency. So, for example, if you want to check the strength of the euro-yen, you have to look at the euro-dollar and the dollar-yen. The strength of the euro yen is determined by EUR/USD x USD/JPY. Therefore, other currency pairs should also be considered.
XM is recommended
XM was originally known as a forex company with too wide spreads. But this was only recently. Now there is an account type called KIWAMI account. The spread is very narrow and very suitable for trading. Therefore, this account type is highly recommended. Especially for those who trade in pounds, it is recommended because the spread is extremely narrow.