You open your trading platform. There are 80+ currency pairs available. EUR/USD, GBP/JPY, USD/ZAR, AUD/CAD... Where do you start? You pick USD/ZAR because it's moving 200 pips a day. You enter a trade. The spread is 80 pips. You're already down $80 before the trade moves. Then the price spikes 150 pips against you in one candle. You blow your account in three trades.
Here's the reality: You were trading the wrong pair for your experience level. USD/ZAR is an exotic pair with massive spreads and extreme volatility. Professional traders didn't start there—they started with EUR/USD and USD/JPY, the most liquid pairs with tightest spreads. They mastered those before touching anything else.
The forex market has over 180 currency pairs. But not all pairs are created equal. Some have tight spreads and move smoothly. Others have spreads so wide you start every trade in a hole. Some trade 24 hours a day. Others barely move during certain sessions. The pairs you trade determine your profitability more than your strategy.
This guide explains which forex pairs to trade in 2026 based on your trading style, experience level, and risk tolerance. I'll break down the differences between major, minor, and exotic pairs, show you which pairs are best for scalping vs. swing trading, and give you specific recommendations for every type of trader.
Understanding Currency Pair Categories
Before choosing which pairs to trade, you need to understand the three main categories.
Major Pairs
Definition: Pairs that include the US Dollar and one other major currency.
The 7 Major Pairs:
- EUR/USD (Euro / US Dollar)
- USD/JPY (US Dollar / Japanese Yen)
- GBP/USD (British Pound / US Dollar)
- USD/CHF (US Dollar / Swiss Franc)
- AUD/USD (Australian Dollar / US Dollar)
- USD/CAD (US Dollar / Canadian Dollar)
- NZD/USD (New Zealand Dollar / US Dollar)
Characteristics:
- Highest liquidity (most trading volume)
- Tightest spreads (often 0.1-1 pips)
- Lowest volatility (relatively stable)
- Most news coverage and analysis
- Best for beginners
Market share: The major pairs account for about 85% of all forex trading volume. EUR/USD alone is roughly 30% of all forex volume.
Who should trade majors: Beginners, day traders, high-frequency traders, anyone who wants low trading costs and predictable price action.
Minor Pairs (Crosses)
Definition: Pairs that don't include the US Dollar, but include two major currencies.
Popular Minor Pairs:
- EUR/GBP (Euro / British Pound)
- EUR/JPY (Euro / Japanese Yen)
- GBP/JPY (British Pound / Japanese Yen)
- AUD/JPY (Australian Dollar / Japanese Yen)
- EUR/AUD (Euro / Australian Dollar)
- GBP/AUD (British Pound / Australian Dollar)
- NZD/JPY (New Zealand Dollar / Japanese Yen)
Characteristics:
- Moderate liquidity (less than majors, more than exotics)
- Wider spreads (1-3 pips typical)
- Higher volatility (more movement per day)
- Less predictable than majors
- More influenced by regional factors
Who should trade minors: Intermediate traders, traders who want more volatility than majors, swing traders who hold positions for days.
Exotic Pairs
Definition: Pairs that include one major currency and one currency from an emerging or smaller economy.
Popular Exotic Pairs:
- USD/ZAR (US Dollar / South African Rand)
- USD/TRY (US Dollar / Turkish Lira)
- USD/MXN (US Dollar / Mexican Peso)
- EUR/TRY (Euro / Turkish Lira)
- USD/THB (US Dollar / Thai Baht)
- USD/SGD (US Dollar / Singapore Dollar)
- GBP/PLN (British Pound / Polish Zloty)
Characteristics:
- Lowest liquidity
- Widest spreads (10-100+ pips)
- Highest volatility (can move 500+ pips per day)
- Most unpredictable
- Susceptible to political and economic shocks
- Highest trading costs
Who should trade exotics: Experienced traders only, traders with large accounts who can afford wide stops, traders who specialize in specific regions.
Real Example: Spread Comparison
Let's compare spreads for a standard lot (100,000 units):
Major Pair (EUR/USD):
- Spread: 0.2 pips
- Cost: $2 per lot
- You're essentially paying $2 to open a trade
Minor Pair (EUR/JPY):
- Spread: 1.5 pips
- Cost: Approximately $12-15 per lot
- Still reasonable, but 6-7x more expensive
Exotic Pair (USD/ZAR):
- Spread: 80 pips
- Cost: Approximately $80 per lot
- You start every trade $80 in the hole
- Need a 80-pip move just to break even
Key insight: Trading USD/ZAR requires a 160-pip move to make the same profit that EUR/USD makes on an 80-pip move (after accounting for spread). The exotic pair has to move TWICE as much for the same profit.
Best Pairs for Beginners (2026)
If you're new to forex trading, start with these pairs. They offer the best combination of liquidity, tight spreads, and predictability.
#1: EUR/USD (King of Forex)
Why it's the best beginner pair:
- Lowest spreads (0.1-0.5 pips at most brokers)
- Highest liquidity (trades 24 hours)
- Most predictable technical analysis works well
- Tons of free analysis and education available
- Less manipulation by big players
Volatility: Averages 60-100 pips per day
Best times to trade:
- London session (3 AM - 12 PM EST): High volatility
- New York session (8 AM - 5 PM EST): High volatility
- London/New York overlap (8 AM - 12 PM EST): Highest volatility
Typical spread: 0.1-0.5 pips
Example trade: EUR/USD is trading at 1.0850. You draw Fibonacci retracement from the recent low at 1.0700 to high at 1.0900. The 50% retracement is at 1.0800. Price pulls back to 1.0805 and forms a hammer candle. You enter long at 1.0810. Stop at 1.0780 (30 pips). Target at 1.0870 (2R). EUR/USD rallies to 1.0870 over three days. You exit for a 60-pip profit.
Broker cost: 0.2 pips = $2 per lot Net profit: $580 after spread (60 pips - 0.2 pips)
#2: USD/JPY (Asian Session King)
Why it's great for beginners:
- Tight spreads (0.2-0.7 pips)
- Clear trends (doesn't chop around as much as other pairs)
- Highly influenced by USD/JPY interest rate differential (easy to understand)
- Great for trading during Asian session (if you're in Asia)
Volatility: Averages 70-120 pips per day
Best times to trade:
- Asian session (5 PM - 4 AM EST): Moderate volatility
- London session: Higher volatility
- New York session: Moderate volatility
Typical spread: 0.2-0.7 pips
Key insight: USD/JPY is strongly influenced by interest rate differentials between the US Federal Reserve and Bank of Japan. When the Fed raises rates and BOJ keeps rates low, USD/JPY typically rallies. This macro relationship makes USD/JPY more predictable than other pairs.
#3: GBP/USD (The Volatile Major)
Why it's good for beginners who want more action:
- Still has tight spreads (0.5-1 pip)
- Higher volatility than EUR/USD (more pips per day)
- Strong trends (when it moves, it MOVES)
- Responds well to technical analysis
Volatility: Averages 100-180 pips per day
Best times to trade:
- London session: When GBP/USD moves the most
- London/New York overlap: High volatility
- Avoid: Asian session (often dead)
Typical spread: 0.5-1 pip
Warning: GBP/USD is more volatile than EUR/USD. You'll see bigger swings and more sudden spikes. Use wider stops (40-60 pips vs. 30-40 pips for EUR/USD).
#4: USD/CHF (The Safe Haven)
Why it's good:
- Tight spreads (0.5-1.5 pips)
- Often inversely correlated with EUR/USD
- Safe haven status (CHF strengthens during market fear)
- Good for hedging EUR/USD positions
Volatility: Averages 60-100 pips per day
Key insight: When global stock markets crash, investors often flee to safety in Swiss Francs. USD/CHF typically drops (CHF strengthens) during market panic. This makes USD/CHF a good pair for risk-off trading strategies.
Beginner pair summary table:
| Pair | Spread | Daily Range | Best Session | Risk Level |
|---|---|---|---|---|
| EUR/USD | 0.1-0.5 pips | 60-100 pips | London/NY | Low |
| USD/JPY | 0.2-0.7 pips | 70-120 pips | All sessions | Low |
| GBP/USD | 0.5-1 pip | 100-180 pips | London | Medium |
| USD/CHF | 0.5-1.5 pips | 60-100 pips | London/NY | Low |
Best Pairs for Scalpers (2026)
Scalping requires tight spreads and high volatility. These pairs offer the best combination for quick in-and-out trades.
#1: EUR/USD (Tightest Spreads)
Why scalpers love it:
- Lowest spreads in forex (0.1-0.3 pips at ECN brokers)
- High liquidity (you can trade 10+ lots without slippage)
- Moves smoothly (fewer sudden spikes)
- 24-hour trading window
Scalping strategy:
- Target 5-15 pip profits
- Use 3-5 pip stops
- Trade during London/NY overlap for maximum movement
- Use ECN broker for lowest spreads
Example: You're scalping EUR/USD during London session. Price breaks above a resistance level at 1.0850. You enter long at 1.0852. Stop at 1.0849 (3 pips). Limit at 1.0862 (10 pips). Trade hits target in 7 minutes. Profit: 10 pips - 0.2 pip spread = 9.8 pips.
Broker cost: 0.2 pips = $2 per lot Net profit: $98 per lot
#2: GBP/USD (High Volatility)
Why scalpers love it:
- Still reasonable spreads (0.5-1 pip)
- Explosive moves (can get 20-30 pip moves in minutes)
- Responds well to breakouts
- Best during London session
Warning: GBP/USD can spike 50+ pips in seconds on news. Avoid trading during UK economic releases unless you're a news trader.
Scalping strategy:
- Target 10-25 pip profits
- Use 5-10 pip stops
- Trade only during London session (3 AM - 12 PM EST)
- Avoid news releases
#3: USD/JPY (Asian Session Scalping)
Why it's good:
- Tight spreads (0.2-0.7 pips)
- Moves enough during Asian session to scalp
- Less chaotic than GBP/USD
- Good if you live in Asia
Asian session scalping:
- Target 8-15 pip profits
- Use 5-8 pip stops
- Trade Tokyo session (7 PM - 4 AM EST)
- Focus on USD/JPY and AUD/JPY
Scalping pair summary:
| Pair | Spread | Avg Move | Best Session | Profit Target |
|---|---|---|---|---|
| EUR/USD | 0.1-0.3 pips | 10-20 pips/hour | London/NY overlap | 5-15 pips |
| GBP/USD | 0.5-1 pip | 15-30 pips/hour | London only | 10-25 pips |
| USD/JPY | 0.2-0.7 pips | 8-18 pips/hour | Asian/London | 8-15 pips |
Best Pairs for Swing Traders (2026)
Swing trading holds positions for days to weeks. You need pairs that trend well and don't have overnight costs that eat your profits.
#1: EUR/USD (Best Trending Major)
Why swing traders love it:
- Clean trends that last weeks
- Low swap rates (overnight interest costs)
- Highly liquid (easy to enter/exit large positions)
- Responds well to fundamental analysis
2026 outlook: The Euro is showing strength against the Dollar due to ECB rate hikes and European economic recovery. Expect potential EUR/USD uptrend in 2026.
Swing strategy:
- Target 200-500 pip moves over 1-4 weeks
- Use 50-100 pip stops
- Enter on pullbacks to Fibonacci levels
- Hold through minor volatility
Example: EUR/USD rallies from 1.0700 to 1.0900 (200 pips). It pulls back to 1.0800 (50% Fibonacci). You enter long at 1.0810. Stop at 1.0750 (60 pips). Target at 1.0950 (previous high + extension). EUR/USD trends higher over three weeks and hits 1.0960. You exit for a 150-pip profit.
Swap cost: Approximately $1-3 per day per lot (depending on broker and interest rate differential) Net profit: $1,500 - $60 (20 days × $3) = $1,440 per lot
#2: AUD/USD (Commodity Currency Play)
Why it's great for swing trading:
- Strongly correlated to gold prices (easy fundamental analysis)
- Trends well with commodity cycles
- Good volatility (not too slow, not too chaotic)
- Australian economy data is consistent and predictable
Fundamental driver: AUD/USD moves with gold prices. When gold rallies, AUD usually strengthens against USD. This gives you an additional analysis tool beyond technical analysis.
Swing strategy:
- Trade in direction of gold trend
- Target 150-400 pip moves
- Use 80-120 pip stops
- Hold for 1-8 weeks
#3: NZD/USD (Higher Yielding)
Why swing traders like it:
- Higher interest rates in New Zealand (positive swaps for long positions)
- Trends well with risk sentiment
- Less crowded than AUD/USD (fewer traders watching it)
2026 outlook: NZD offers higher yields than most major currencies. If you're long NZD/USD, you earn positive swap (interest) daily. This can add up significantly over multi-week holds.
Swing strategy:
- Prefer long positions (earn positive swap)
- Target 200-500 pip moves
- Use 100-150 pip stops
- Hold for 2-8 weeks
Swap example: You're long 1 lot of NZD/USD for 30 days. Positive swap is $5 per day. You earn $150 in swap alone. If the trade also makes 300 pips ($3,000), total profit is $3,150.
#4: GBP/JPY (The Volatility Beast)
Why experienced swing traders love it:
- Explosive moves (can trend 1,000+ pips in weeks)
- Strong trends once they get going
- Great risk-reward when trends align
Warning: GBP/JPY is NOT for beginners. It can move 200-300 pips in a single day. Only trade this pair if you have 6+ months of experience and can handle large drawdowns.
Swing strategy:
- Target 300-1,000 pip moves
- Use 150-200 pip stops
- Only trade major trends (don't chop around)
- Size smaller (half your normal position size)
Example: GBP/JPY breaks above a major resistance at 185.00. You enter long at 185.50. Stop at 183.00 (250 pips). Target at 192.00 (650 pips). GBP/JPY trends higher for six weeks and hits 193.00. You exit for a 750-pip profit.
Swap cost: Varies widely (can be positive or negative depending on interest rate differential) Net profit: Approximately $7,500 per lot (minus swap costs)
Swing trading pair summary:
| Pair | Avg Move | Hold Time | Stop Size | Swap (Long) |
|---|---|---|---|---|
| EUR/USD | 200-500 pips | 1-4 weeks | 50-100 pips | Neutral/negative |
| AUD/USD | 150-400 pips | 1-8 weeks | 80-120 pips | Neutral |
| NZD/USD | 200-500 pips | 2-8 weeks | 100-150 pips | Positive |
| GBP/JPY | 300-1,000 pips | 2-12 weeks | 150-200 pips | Variable |
Best Pairs for Different Trading Sessions
The forex market is open 24 hours, but different pairs are active at different times.
London Session (3 AM - 12 PM EST)
Best pairs:
- EUR/USD (most active)
- GBP/USD (most active)
- EUR/GBP (most active)
- USD/CHF (active)
Why: London is the forex trading capital of the world. Over 40% of all forex volume trades during London session. European economic data releases happen during this session.
Volatility: Highest of all sessions Liquidity: Highest of all sessions
Strategy: Trade breakouts and trend continuations. London session trends strongly.
New York Session (8 AM - 5 PM EST)
Best pairs:
- EUR/USD (active)
- USD/JPY (active)
- USD/CAD (most active)
- USD/CHF (active)
Why: US economic data releases happen during this session (CPI, NFP, FOMC). USD crosses are most volatile during US news.
Volatility: High (especially during news releases) Liquidity: High
Strategy: Trade US news events if you're a news trader. Otherwise, trade the first 2-3 hours of New York session (8 AM - 11 AM EST) when London and New York overlap.
Asian Session (5 PM - 4 AM EST)
Best pairs:
- USD/JPY (most active)
- AUD/JPY (active)
- NZD/JPY (active)
- AUD/USD (moderately active)
Why: Tokyo is open. Japanese economic data releases happen. Australian and New Zealand markets are also active.
Volatility: Moderate (lower than London/NY) Liquidity: Lower than London/NY but sufficient for majors
Strategy: Scalp USD/JPY and JPY crosses. Trends are weaker during Asian session—better for scalping than swing trading.
Session overlap times (highest volatility):
London/NewY ork overlap (8 AM - 12 PM EST):
- EUR/USD, GBP/USD (most active)
- Highest volatility of the day
- Best time for day trading
Asian/London overlap (3 AM - 5 AM EST):
- EUR/JPY, GBP/JPY (active)
- Moderate volatility
- Good for early risers
Pairs to Avoid (Especially for Beginners)
Some pairs are money pits for retail traders. Here's what to avoid and why.
Exotic Pairs (USD/ZAR, USD/TRY, etc.)
Why avoid:
- Massive spreads (50-100+ pips)
- Extreme volatility (can blow your account in one trade)
- Low liquidity (slippage is common)
- Manipulated by central banks
- Almost zero analysis available
Example: You trade USD/ZAR with a 100-pip spread. The pair moves 200 pips in your favor. You made 100 pips profit after spread. But you risked 200 pips to make 100 pips. That's 0.5R reward-to-risk. You'll lose money long-term.
Who should trade exotics: Only experienced traders with $10,000+ accounts who specialize in specific regions and understand local politics/economics.
Minor Pairs During Off Hours
Why avoid: Trading minor pairs like EUR/AUD during Asian session when there's no liquidity. The spread widens to 5-10 pips, and price doesn't move.
Better approach: Trade pairs during their active sessions. Trade EUR/GBP during London session. Trade AUD/JPY during Asian session. Trade USD/CAD during New York session.
Any Pair During Major News (Unless You're a News Trader)
Why avoid: Spreads widen to 5-20 pips during major news (NFP, CPI, FOMC). Price can spike 50-100 pips in seconds. Your stop won't get filled at your level—you'll get slippage.
Example: You're short EUR/USD with a 20-pip stop. NFP comes out better than expected. EUR/USD spikes up 80 pips in 5 seconds. Your stop gets filled at 1.0950 (30 pips above your stop level) due to slippage. You lost 30 pips instead of 20.
Better approach: Close positions 5 minutes before major news. Wait 30 minutes after news for volatility to settle. Or become a skilled news trader (6+ months of practice required).
2026 Market Outlook: Which Pairs Will Move?
The forex landscape in 2026 is shaped by major macro trends. Here's what to watch.
USD Pairs: The Weakening Dollar Thesis
Context: The Federal Reserve cut rates throughout 2025 and is expected to continue easing in 2026. Lower interest rates weaken the USD.
Pairs to watch:
- EUR/USD: Potential uptrend (EUR strength)
- GBP/USD: Potential uptrend (GBP strength)
- AUD/USD: Potential uptrend (AUD strength)
- USD/JPY: Potential downtrend (JPY strength as BOJ normalizes policy)
Trading implication: Look for buying opportunities in EUR/USD, GBP/USD, and AUD/USD on pullbacks. These pairs could trend higher for months if the Dollar weakness thesis plays out.
JPY Pairs: The End of Negative Rates
Context: The Bank of Japan ended negative interest rates in 2025 and is expected to continue hiking in 2026. This is massively bullish for JPY.
Pairs to watch:
- USD/JPY: Potential downtrend (JPY strength)
- EUR/JPY: Potential downtrend (JPY strength)
- GBP/JPY: Potential downtrend (JPY strength)
Trading implication: Look for shorting opportunities in JPY crosses. The JPY has been suppressed for years—2026 could be the year of JPY strength.
Commodity Currencies: Gold and Oil Plays
Context: Gold hit record highs in 2025 and is expected to remain strong in 2026. Oil prices are volatile but trending upward.
Pairs to watch:
- AUD/USD: Strongly correlated to gold
- CAD/USD: Strongly correlated to oil
- NZD/USD: Benefits from commodity strength
Trading implication: If you're bullish on gold, look for long AUD/USD trades. If you're bullish on oil, look for long CAD/USD trades. These correlations aren't perfect, but they give you an edge.
How Many Pairs Should You Trade?
Most traders trade too many pairs. Here's a better approach.
Beginners (0-6 months): Trade 1-2 pairs
Recommended:
- EUR/USD (primary)
- USD/JPY (secondary, optional)
Why: Focus is more important than variety. Mastering one pair is better than being mediocre at ten pairs.
Goal: Learn EUR/USD inside and out. Understand how it moves during different sessions. Learn its personality. Only add a second pair when you're consistently profitable on the first.
Intermediate (6-24 months): Trade 2-4 pairs
Recommended:
- EUR/USD (primary)
- GBP/USD or USD/JPY (secondary)
- AUD/USD or NZD/USD (tertiary)
Why: You have experience and can handle multiple pairs. But don't overdo it. Each additional pair spreads your attention thinner.
Advanced (24+ months): Trade 3-6 pairs
Recommended:
- 2-3 major pairs (EUR/USD, GBP/USD, USD/JPY)
- 1-2 minor pairs (EUR/JPY, GBP/JPY)
- Optional: 1 exotic pair (if you specialize in a region)
Why: You have the experience to handle multiple pairs across different sessions. But even advanced traders shouldn't trade more than 6-8 pairs. Quality over quantity.
Key Takeaways
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Start with major pairs, especially EUR/USD. They have the tightest spreads, highest liquidity, and most predictable price action. EUR/USD is the best pair for beginners—it accounts for 30% of all forex volume and has spreads as low as 0.1 pips. Master EUR/USD before touching anything else.
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Match pairs to your trading style. Scalpers need EUR/USD and GBP/USD (tight spreads, high volatility). Swing traders need EUR/USD, AUD/USD, and NZD/USD (good trends, reasonable swap costs). Day traders need pairs active during your trading session (London session = EUR/USD and GBP/USD; Asian session = USD/JPY and AUD/JPY).
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Avoid exotic pairs until you're consistently profitable. Pairs like USD/ZAR and USD/TRY have spreads of 50-100+ pips and extreme volatility. You start every trade in a deep hole. Only trade exotics if you have 12+ months of experience and a $10,000+ account.
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Trade pairs during their active sessions. EUR/USD and GBP/USD are most active during London session (3 AM - 12 PM EST). USD/JPY and AUD/JPY are most active during Asian session (5 PM - 4 AM EST). Trading pairs during dead sessions means wide spreads and no movement.
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Consider swap costs for swing trading. Holding positions overnight costs or earns money depending on interest rate differentials. NZD/USD and AUD/USD often have positive swaps for long positions (you earn interest). EUR/USD often has negative swaps for long positions (you pay interest). Factor this into your swing trading decisions.
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Use correlations to diversify risk. EUR/USD and USD/CHF are strongly inversely correlated. Going long both doesn't diversify—you're essentially taking the same trade twice. Instead, trade EUR/USD and USD/JPY (lower correlation) for true diversification.
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Pair count: 1-2 for beginners, 2-4 for intermediate, 3-6 for advanced. Most traders trade too many pairs. Spreading yourself thin leads to mediocre results. Focus on mastering a few pairs rather than dabbling in dozens.
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Watch the 2026 macro trends. The weakening Dollar thesis favors EUR/USD, GBP/USD, and AUD/USD longs. The JPY normalization thesis favors USD/JPY shorts. Commodity strength favors AUD/USD and CAD/USD longs. Align your trading with these macro trends for an edge.
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Avoid trading during major news unless you're a news trader. Spreads widen to 5-20 pips during NFP, CPI, and FOMC. Price can spike 50-100 pips in seconds. Your stops won't get filled at your levels due to slippage. Close positions 5 minutes before major news and wait 30 minutes after.
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Focus on process, not finding the "perfect" pair. No pair is magically more profitable than another. Professional traders make money with EUR/USD, GBP/JPY, and everything in between. The edge isn't in the pair—it's in your strategy, risk management, and discipline. Pick a few pairs that fit your style and master them.
The forex market offers 180+ currency pairs, but you only need 2-3 to build a profitable trading career. The best pairs for you depend on your experience level, trading style, and risk tolerance. Beginners should stick to EUR/USD and USD/JPY. Scalpers should trade EUR/USD and GBP/USD during London session. Swing traders should trade EUR/USD, AUD/USD, and NZD/USD for trendfollowing.
Find the pairs that fit your style, master them, and ignore the rest. You don't need to trade everything—you just need to trade a few things exceptionally well.
ChartMini tracks real-time spreads and volatility across 50+ forex pairs, alerts you when pairs enter your favorite trading sessions at ideal levels, and automatically calculates swap costs and pip values for each pair so you can plan your swing trades with precision.