The retail forex traders are always trading the major pairs. Since the price of the major pair is much more stable it’s relatively safe for the retail investors. But some expert professional in the United Kingdom trade the synthetic pairs and make a huge amount of money in every single month. Those who are completely new to this trading profession might not understand about the cross or synthetic pair trading. Any currency pair which missing the U.S dollar is known as a cross or synthetic pair. For example GBP, EURJPY, GBPCHF etc. The price movement of the cross pair extremely wild and if you make a small mistake, you have to lose a big sum of money. However, if you still want to learn cross pair trading this article will give you a clear guideline how to trade the synthetic pair like the expert UK traders.

Switch to the higher time frame

The first condition to trade the cross pair is to trade in the higher time frame. This market is extremely volatile in nature and when it comes to cross pair trading, you are dealing with the wild swings of the price. But if you start trading on the higher time frame lots noise will be filtered. But before you switch back to the higher time frame you need to develop strong patience. There is saying, patience has its own reward. This simple proverb has huge impact in the life of a successful currency trader. But switching to higher time frame is not going to help you to resist your emotions. You have to use the demo account and trade the market in the higher time frame. If you can make profit consistently for at least 3 months, you can consider yourself ready for live trading .But make sure you never break any rules of the investment industry or else you will lose your trading capital.

Use wide stop loss

As a synthetic pair trader you will see lots of false spike in the market. To avoid such false spike you need to use wide stop loss. Trading CFDs is an art. You have to continuously assess the risk factors to become successful at currency trading. You might be thinking that this is profession is really easy but for the novice trader is the hardest task in the world. They fail to keep their emotions in control thus place random trades without assessing the risk factors. Some traders often use too tight stops for their trades and lose money. But this is not an organized way to trade this market. You have to create a strategy which will help you to execute quality trades. Learning the technical and fundamental parameters is very crucial for your trading success. Unless you work hard you can’t become successful at synthetic pair trading.

Learn to stay on the sideline

In cross pair trading you will often have to test your patience level. Being an aggressive trader you have nothing to earn from this market. Your duty is to wait on the sideline until you get a clear shot in the market. It might take week or month still you should never place a trade without getting a clear signal. This is the hardest part in currency trading. You don’t have to overtrade the market to become a successful trader. A few quality trades in a month is more than enough to make your rich. Always remember the successful traders do nothing most of the time. They always wait for the right opportunity to catch the best movements of the market.

So far you have read the three most important rules to trade the cross pairs. So it ’s time for you to decide whether you can follow these rules to make a profit. If you think that these rules are easy to follow, open a demo account and try to main this same rule for the next three months.

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