Strategies

Day traders Strategies
First look at market conditions, searching for high liquidity & high volatility. Markets with higher liquidity usually have lower spreads, slippage and other costs.

For example
EURUSD, the most widely traded currency pair, has far lower spreads than less liquid pairs like the AUDNZD or GBPJPY.

The lower the liquidity, the wider the spread and the more pips a day trader will need to overcome in order to have a profitable trade.

Volatility refers to the average range a currency pair tends to trade in a day.

Compare GBPUSD to EURGBP. Because the Pound Dollar tends to trade in wider range it offers more opportunity for day traders to grab hold of market moves.

Trading EURGBP on the other hand can be one of the most painful experiences imaginable for a day trader, since is pair tends to stick to a tight daily range and offers little opportunity for intra-day speculation.