Brokers With the Highest Volume for EUR/USD
In forex, the volume represents the number of lots traded in a currency pair within a specified time period. The higher the volume, the more active the instrument you're trading with. Trading volume is a way to measure how often security trades over a set period of time. Trading with high volume minimizes volatility, reduces liquidity risk, and tends to have a smaller spread.
If you like to trade with high volume, it's best to use a broker that offers high volume. Brokers act as intermediaries between companies and traders, they play a vital role in affecting your trading activities. If you trade on EUR/USD, this is a list of brokers with the highest volume for EUR/USD.
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What is the origin story of EUR/USD?
The journey of the Euro actually began when the Euro was still in the form of an internal accounting unit for members of the European Community (EC). There were two forms of the Euro at that time, a European accounting unit and a European currency unit (ECU). However, both were not actual currencies. Instead, both forms of "currency" were like a basket of several EC currencies designed to help stabilize the European exchange rate. Nonetheless, the ECU paved the way for the single Euro currency.
Exactly on January 1, 1999, the Euro was introduced as a single currency. The value of one Euro was equal to one ECU, and the original exchange rate of the Euro vs. the US Dollar at that time was 1.1686. Although the Euro did not become a physical currency until 2002, the Euro launch already bounded the Eurozone currencies collectively. In other words, the French Franc, German Deutsche Mark, Spanish Peseta, Italian Lira, and other Eurozone countries no longer had separate exchange rates.
Continue Reading at 5 EUR/USD Facts Every Beginner Should Know
What is the main driver of EUR/USD?
The monetary policy divergence between the Eurozone and the US. As such, fundamental factors with the most significant influence on the exchange rate of EUR/USD throughout history are:
- Monetary policy from each central bank (The Fed and ECB).
- Economic fundamentals of the US and the Eurozone.
Continue Reading at 5 EUR/USD Facts Every Beginner Should Know
How does GBP/USD correlate to EUR/USD?
The GBP/USD is often recognized as having a positive correlation with the EUR/USD pair. Here's a chart that shows the positive dynamic between GBP/USD and EUR/USD on a daily chart:
Many traders use this correlation to hedge both pairs. The strategy involves opening positions in GBP/USD and EUR/USD at the same time. If the hedging strategy is applied to offset the losses, traders tend to trade GBP/USD and EUR/USD oppositely. But, if the hedging's purpose is to optimize the potential profit, traders would trade GBP/USD and EUR/USD in the same direction.
Continue Reading at Tips on How to Trade GBP/USD
How does trading volume affect floating leverage?
Floating leverage can change under certain conditions, one of which is based on the trading volume. Volume-based floating leverage typically decreases along with the increase in trading volume.
Say you initially trade with 1:200 leverage. When your trading volume amounts to more than $3 million, the leverage would be automatically changed to 1:100. The adjustment can apply to the next level of volume increase, depending on how your broker sets the rule. It is important to note that the change of margin requirement that is brought by the new leverage would only apply to positions opened after the adjustment So, you don't have to worry about increased margin in your previous trades.
Continue Reading at What is Floating Leverage in Forex Trading?