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  1. Beginner
    Early Stages For Beginners
    8 Topics
  2. Forex Terminology
    11 Topics
  3. Margin & Leverage
    2 Topics
  4. Intermediate
    Identifying Scams
    2 Topics
  5. Brokers for Beginners
    5 Topics
  6. Technical Analysis
    13 Topics
  7. Advanced
    Using Indicators
    6 Topics
  8. Technical Analysis (Part 2)
    8 Topics
  9. Market Structure
    5 Topics
  10. Fundamental Analysis
    9 Topics
  11. Completion
    Risk Management for Beginners
    8 Topics
  12. Psychology for Beginners
    7 Topics
  13. Personal Psychology Questions
    2 Topics

Major and Minor Currency Pairs

So you’re excited to learn Forex! Well let’s really start learning. You already know that in Forex, you’re buying one currency pair and selling the other. Let’s actually give you examples of pairs you’ll be trading!
In Forex, there’s a thing called: “MAJOR” currency pairs and “MINOR.” The major currency pairs are the most widely traded pairs in the world whereas the minors aren’t traded as much, even though they’re very popular due to their popularity.

Major Currency Pairs:

Since the United States has the largest economy in the world and is also the reserve currency of the world, the 7 majors all have the United States attached to it. Since they are widely traded, they typically offer the lowest spreads. Keep this in your mind:

More people trading it = More liquid & more steady
Less people trading it = Less liquid and More volatile

NOTE: The less liquidity a pair has, the more volatile it is.

Anyway, let’s talk about the majors!

EUR/USD – Euro/US Dollar (Europe/United States)
USD/CHF – US dollar/Swiss Franc (United States/Switzerland)
USD/JPY – US dollar/Japanese Yen (United States/Japan)
GBP/USD – British Pound/US Dollar (Great Britain/United States)
USD/CAD – US Dollar/Canadian Dollar (United States/Canada)
AUD/USD – Australian Dollar/US Dollar (Australia/United States)
NZD/USD – New Zealand Dollar/US Dollar (New Zealand/United States)

So basically… pay attention to the US Dollar. They’re involved in almost 85% of the transactions you hear about in the Forex market.

As far as minor currency pairs, they don’t include the US Dollar at all; and even though they don’t include the US Dollar, they’re still pretty liquid. They DO have wider spreads though.

Minor Currency Pairs:

EUR/GBP – Euro/British pound
EUR/AUD – Euro/Australian dollar
GBP/CAD – British pound/Canadian dollar
GBP/AUD – British pound/Australian dollar
EUR/JPY – Euro/Japanese yen
GBP/JPY – British pound/Japanese yen

These are just a few examples! There are PLENTY more minor pairs to trade in the Forex market. Usually pairs that are popular but don’t regard the US Dollar are the minors when they’re paired together. (like the Euro Dollar, The Great Britain Pound, the Japanese Yen, the Australian Dollar, The Swiss/Switzerland Franc and the New Zealand Dollar).

Although there are a lot of minor pairs, the 7 major pairs you read above, are the only major pairs in the Forex market. There aren’t any extra majors!

Exotic Pairs:

Exotic pairs are a thing believe it or not but you probably will NEVER trade an exotic pair. The US Dollar is ½ of the pair with exotic pairs, but the unfortunate part is, the other ½ is an emerging country. Countries such as Thailand, Brazil & Mexico would be considered “exotics.” If you see anything with your Forex broker that shows USD/MXN (Mexico), USD/THB (Thailand) or USD/BRL (Brazil), stay far away from it. The spreads are astronomical as they are extremely volatile and there are not many trade setups.