Best Forex Currency Pairs to Scalp

In forex trading, you can use many strategies to win in the market. Scalping is a common strategy loved by many forex traders and is also suitable for beginners. So long as you know how to apply this strategy correctly in your trades, you can make a significant profit within a short period.

Scalping is a trading strategy in which a trader buys and sells securities as close to the market as possible to profit from small price differences. The practice is usually short-term, meaning it can be executed quickly with little or no loss. Scalpers attempt to buy securities for less than they’re worth and then sell them at a higher price by timing small pip movements of about 5 to 20.

As much as scalping is a good forex trading strategy, it needs understanding and accurate market entry and exit in order to make good profits. One common problem facing scalpers is choosing the best forex pairs to scalp trade. The thing is that there are many currency pairs to trade, which is the reason why many beginner traders give up on using the scalping strategy. This article will help you know major, minor and exotic pairs to scalp trade in forex. Read on to gain more insight.

Major Forex Pairs to Scalp

Major forex pairs are the most popular and well-known names in the world of currency trading. They are usually referred to as the Big Four or Big Five and can be used interchangeably. Some of the best major currency pairs to scalp trade include;

EUR/USD

With the EUR and USD, you have got to know that you are dealing with two powerful economies. This means that the pair is very volatile, which makes the EUR/USD pair suitable for scalping. Also, its high demand and liquidity make the pair extremely profitable as any market event could cause a 30 pip movement in a matter of seconds or minutes.

An Image showing forex comparison chart of the EUR USD pair

USD/CHF

This pair consists of the US dollar and the Swiss franc. The good thing with trading with the USD/CHF pair is that it is very stable because of the Swiss franc. In fact, the CHF is always considered a safe haven, which is why many traders love using this pair. The USD/CHF pair is suitable and great for scalping because it allows you to make profits and minimal losses because of its stability.

GBP/USD

The GBP/USD is yet another forex pair actively traded on the foreign exchange market. The pair is also suitable for beginner scalp traders because both currencies come from super strong economies. The GBP and USD share a lot in common; for example, both countries share one language. Also, the Bank of England and the Fed are very similar. All these similarities work in favour of this pair, allowing scalpers to make reasonable gains with this pair.

USD/JPY

The USD/JPY is also among the best pairs to scalp forex due to its high liquidity in the market. This high liquidity can be attributed to the frequency at which both currencies are used in the market. When you look at the US dollar, it is traded globally, while the Japanese Yen is a highly used currency in the Asian market. Many sources say that the USD/JPY pair is the second most used pair in the FX market, making it a good pair for scalpers looking to make profits quickly.

Profitable Minor Forex Pairs to Scalp

Minor forex pairs are usually made up of two currencies: one representing the major economy and another representing a smaller region or country. They are considered to be the second most liquid pairs after the major pairs and are traded throughout the day by both retail and institutional traders. Also known as “crosses.” The three top most minor currency pairs that can be used by scalpers include;

AUD/JPY

This cross pair has high liquidity but low volatility compared to major forex pairs. However, this does not mean that there are no opportunities with this forex pair. The economies of both currencies are in the same league. Japan mainly deals with high-tech industries and manufacturing services. This means its high exports consist of cars and electronics. Japan also has a high population, meaning it must import food from other countries.

On the other hand, Australia has tracks and tracks of land, which is why its main exports are agricultural produce and natural resource. These economic facts make the two currencies pair well, and using scalping when trading this pair could earn you reasonable profits.

Dollar notes representing forex profits from scalping strategy

NZD/JPY

NZD/JPY is also among the best forex pairs to scalp trade. With this pair, you could potentially enjoy trading in the forex market. First, the pair is very volatile. While this could mean high risks, other traders see a better opportunity to make larger gains in the market. Another great advantage with this pair is that it forms stronger trends, meaning that you could close your positions when the pair hits 50 to 100 pips instead of exiting with 10 pips per trade.

EUR/AUD

If you plan to become a scalp trader, the EUR/AUD is another pair to consider. The pair is regarded as a minor forex pair that is slightly volatile and liquid. When trading this pair, you need to mainly focus on its economies. This is because when the value of the pair changes due to economic events, so does the trading value of the EUR/AUD pair.

EUR AUD live trading chart

The EUR price changes are mainly triggered by the European Central Bank (ECB) and employment numbers in the country. On the other hand, AUD is affected by political events and its export commodities, such as iron ore and coal. Therefore, those are the main things to look at when scalp trading this pair.

The Best Exotic Forex Pairs to Scalp

Apart from major and minor pairs, exotic pairs can also be scalp traded. Exotic pairs are those forex pairs that are inclusive of one major currency and the other from a developing nation. Basically, there are more than 5 exotic pairs, but not all can be scalp traded. The best thing is that you can trade exotic pairs with several brokers. Also, Audacity Capital allows traders to use exotic pairs and provide them with the necessary resources to help them know how they work. Some of a few exotic pairs to scalp trade are;

USD/SEK

This forex quote currency is a combination of the US dollar and the Swedish Krona. The pair is very sensitive but not very liquid compared to major and minor currencies. The good thing is that Sweden is a highly productive country and mainly exports its products to the Eurozone and UK. This means that any economic development in the country could potentially influence the value of the SEK.

graph showing USD SEK as the Best Exotic Forex Pairs

Sweden is also a tech-savvy and well-educated country, which is why the SEK has been included as one of the best currencies to trade. Many professional traders also consider the currency a safe haven as it could retain its price or move slightly in the event of political or economic issues.

USD/ZAR

USD/ZAR is another exotic pair that can be scalp traded because of its reasonable volatility. Even though the pair is less liquid, its high volatility can offer you good profits when scalping. This is because the USD is a largely traded currency, while the South African economy (Rand) is rapidly developing. Compared to other currencies, the Rand is gaining a lot of attention because the country mainly deals with commodities, such as gold, magnesium, diamonds, jewellery, etc.

Other exotic pairs you can scalp trade include;

  • USD/TRI
  • NOK/USD
  • BRL/USD

Which Is the Best Forex Pair for Beginner Scalp Traders?

When looking at the best pairs to scalp forex, it can be a bit confusing, especially if you are a beginner. Many forex pairs look promising, but most require specific strategies to make you potential gains. If you are planning to be a scalp trader, it is wise to begin with currency pairs that are easy to understand, and you can easily follow their economy.

For example, the EUR/USD is a good pair to start with. It is volatile and liquid, meaning you can make reasonable profits in every trade. Also, Audacity Capital will help you understand more about forex trading and which pairs to use.

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Frequently Asked Questions About Best Currency Pairs to Scalp

  • What is the most important thing to look for in a pair when scalp trading?

    When choosing a forex pair to scalp trade, focus mainly on the volatility and liquid of the pair. Remember, scalping is all about making profits in small market movements and picking a high volatile pair is the best way.

  • Is scalp trading profitable?

    Scalp trading is very profitable if applied to the correct forex pairs.

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