lavishdream19 wrote: Fri Oct 31, 2025 10:14 pm
It's worth considering that not all pips are equal.
A successful 100 pip trade on GBPAUD would yield a profit of approx £549.89
A successful 100 pip trade on GBP USD would yield a profit of approx £787.82
boytoy wrote: Fri Oct 31, 2025 10:47 pm
Getting 100 pips on GBPUSD is a lot harder to bag than on GBPAUD which is why the most volatile pairs are the best to trade
Both pairs have their advantages, GBPUSD being safer for new traders who are looking for a 10 pip scalp and want to repeat it with less risk of ruin but very uneventful market which in turn causes a lot of false indicator signals.
Negative swaps on both long and short for both pairs which won't change any time soon, but GBPAUD is where the money is because it actually moves and respects price action (and your indicator's signals), even though indicators follow price.
This phenomenon is known with volatile pairs due to the less algorithmic noise which makes the volatile markets work better for traders who rely on indicator-heavy trading eg. if TDI green crosses red on GBPUSD it's anyone's guess where it'll go, but if TDI green crosses red on GBPAUD, there's way more certainty in it's signal.
As you can see above,
GBPAUD tends to have smoother, more directional price action (and provide certainty for indicator's signals) while
GBPUSD exhibits tighter, choppier fluctuations illustrating the difference in “algorithmic noise" as mentioned above.
Below is a comparison of volatility based on ATR, illustrating that
GBPAUD consistently maintains a greater "daily range" and volatility in comparison to
GBPUSD. This characteristic aids indicators in producing clearer signals with a reduced occurrence of "false triggers".
As new traders we tend to gravitate towards safer markets and "Majors" as they have lower spreads (and it's what we're told to do). But as experience grows, all traders should begin exploring the "Minors" and the more volatile markets which will unveil an entirely new realm of possibilities.
