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

Major and Minor Currency Pairs

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

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 mind:

More people trading the currency = More liquid & more steady
Less people trading the currency = Less liquid and more volatile

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

Next, let’s list the 7 majors forms of currency!

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. However, they do have wider spreads.

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 other majors!

Exotic Pairs:

Exotic pairs do exist, believe it or not, but you probably will NEVER trade an exotic pair. The US Dollar is ½ of each exotic pair, 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 attached to it.