The base currency is the USD, while the CAD is considered to be a quote. The most common nickname for this pair is the Loonie. It derives from the name of a well-known Canadian bird called the loon. The Canadian dollar is heavily dependent on the prices of commodities and the US dollar, as more than 80% of Canadian exports go to the United States.
What Is the Spread of the USD/CAD?
Generally, the spread for the USD/CAD ranges from 0 to 3 pips, but it varies from broker to broker. The lower the better, since it’s less costly to trade the USD/CAD. If you open a position of one lot on USD/CAD with a spread of one pip, you will pay 14 CAD as a fee. However, if the spread is 3 pips, it will cost you 42 CAD instead of 10 CAD for a one lot of USD/CAD.
Which Types of Market News and Events Significantly Impact the USD/CAD?
The Federal Reserve and the Bank of Canada decisions impacting rates can significantly impact USD/CAD price volatility. You will see huge spikes on USD/CAD charts, as individual and corporate traders adjust their positions according to the news.
What Is the Minimum Lot Requirement Needed to Trade This Pair?
Nano is the smallest lot that can be used to open a trade for the USD/CAD pair. If you use the MT4, platform, you should be able to input 0.0001 to open a nano position that is worth 100 currency units.