Understanding Currency Pairs: Major, Minor, Exotic.
17 July 2025
If you’re just starting your forex trading journey, one of the first things you need to understand is Currency Pairs — because in forex, you’re always trading one currency against another. In this beginner’s guide, we’ll explain what currency pairs are, why they matter, and the difference between major, minor, and exotic pairs.
What is a currency pair?
A currency pair is simply two currencies quoted together, like this:
EUR/USD : Euro Vs US Dollar.
The first currency (EUR) is called the base currency, and the second currency (USD) is the quote currency. For example, if EUR/USD = 1.1000, it means 1 Euro = 1.10 US Dollars. When you trade forex, you are buying one currency and selling the other at the same time.
What Are Major Currency Pairs?
Major pairs are the most traded, most liquid, and most stable currency pairs in the world.
They always include the US Dollar (USD) on one side.
Examples of major pairs:
EUR/USD : Euro Vs US Dollar.
GBP/USD : British Pound Vs US Dollar.
USD/JPY : US Dollar Vs Japanese Yen.
USD/CHF : US Dollar Vs Swiss Franc.
AUD/USD : Australian Dollar Vs US Dollar.
USD/CAD : US Dollar Vs Canadian Dollar.
NZD/USD : New Zealand Dollar Vs US Dollar.
Why beginners like majors:
Lowest trading costs (tight spreads).
High liquidity (easy to enter and exit trades).
Lots of educational resources and news available.
What Are Minor Currency Pairs?
Minor pairs (or cross currency pairs) are currency pairs that do not include the US Dollar but involve other major currencies.
Examples of Minor Pairs:
EUR/GBP : Euro Vs British Pound.
EUR/JPY : Euro Vs Japanese Yen.
USD/JPY : British Pound Vs Japanese Yen.
AUD/NZD : Australian Dollar Vs New Zealand Dollar.
Why trade minors:
Slightly more volatility (price movement).
Good opportunities when major pairs are quiet.
What Are Exotic Currency Pairs?
Exotic pairs include one major currency and one currency from an emerging or smaller economy.
Examples of Minor Pairs:
USD/TRY : US Dollar Vs Turkish Lira.
EUR/ZAR : Euro Vs South African Rand.
USD/SGD : US Dollar Vs Singapore Dollar.
USD/THB : US Dollar Vs Thai Baht.
Important to know:
Higher spreads (more expensive to trade).
Less liquidity (harder to get in/out at good prices).
Can be more unpredictable and risky.
Which Currency Pairs Should Beginners Trade?
For most beginners, it’s smart to start with major pairs.
✅ They’re easier to analyze.
✅ They have lower costs.
✅ They have more available learning material.
Once you’ve developed your skills, you can explore minor pairs for more variety and only consider exotics if you’re experienced and have a solid risk management plan.
Sign up today and take control of your forex trading journey!
Start Trading Now!
Understanding Currency Pairs: Major, Minor, Exotic.
17 July 2025If you’re just starting your forex trading journey, one of the first things you need to understand is Currency Pairs — because in forex, you’re always trading one currency against another. In this beginner’s guide, we’ll explain what currency pairs are, why they matter, and the difference between major, minor, and exotic pairs.
What is a currency pair?
A currency pair is simply two currencies quoted together, like this:
EUR/USD : Euro Vs US Dollar.
The first currency (EUR) is called the base currency, and the second currency (USD) is the quote currency. For example, if EUR/USD = 1.1000, it means 1 Euro = 1.10 US Dollars. When you trade forex, you are buying one currency and selling the other at the same time.
What Are Major Currency Pairs?
Major pairs are the most traded, most liquid, and most stable currency pairs in the world.
They always include the US Dollar (USD) on one side.
Examples of major pairs:
EUR/USD : Euro Vs US Dollar.
GBP/USD : British Pound Vs US Dollar.
USD/JPY : US Dollar Vs Japanese Yen.
USD/CHF : US Dollar Vs Swiss Franc.
AUD/USD : Australian Dollar Vs US Dollar.
USD/CAD : US Dollar Vs Canadian Dollar.
NZD/USD : New Zealand Dollar Vs US Dollar.
Why beginners like majors:
Lowest trading costs (tight spreads).
High liquidity (easy to enter and exit trades).
Lots of educational resources and news available.
What Are Minor Currency Pairs?
Minor pairs (or cross currency pairs) are currency pairs that do not include the US Dollar but involve other major currencies.
Examples of Minor Pairs:
EUR/GBP : Euro Vs British Pound.
EUR/JPY : Euro Vs Japanese Yen.
USD/JPY : British Pound Vs Japanese Yen.
AUD/NZD : Australian Dollar Vs New Zealand Dollar.
Why trade minors:
Slightly more volatility (price movement).
Good opportunities when major pairs are quiet.
What Are Exotic Currency Pairs?
Exotic pairs include one major currency and one currency from an emerging or smaller economy.
Examples of Minor Pairs:
USD/TRY : US Dollar Vs Turkish Lira.
EUR/ZAR : Euro Vs South African Rand.
USD/SGD : US Dollar Vs Singapore Dollar.
USD/THB : US Dollar Vs Thai Baht.
Important to know:
Higher spreads (more expensive to trade).
Less liquidity (harder to get in/out at good prices).
Can be more unpredictable and risky.
Which Currency Pairs Should Beginners Trade?
For most beginners, it’s smart to start with major pairs.
✅ They’re easier to analyze.
✅ They have lower costs.
✅ They have more available learning material.
Once you’ve developed your skills, you can explore minor pairs for more variety and only consider exotics if you’re experienced and have a solid risk management plan.
Sign up today and take control of your forex trading journey!
Start Trading Now!