How are currencies traded?
All forex trading is expressed as a combination of the two currencies being exchanged. There are three categories of currency pairs:
the “majors“
the “crosses“
the “exotics“
Major Currency Pairs
The major currencies and the major forex pairs are two related but distinct concepts in the forex market. The EIGHT major currencies are the most widely traded and stable currencies in the world
The SEVEN major forex pairs, on the other hand, are the most actively traded currency pairs in the forex market. These pairs are typically made up of one of the major currencies and another currency, and are considered majors because they are the most liquid and have the highest trading volume in the forex market.
| Currency Pair | Countries |
|---|---|
| EUR/USD | Europe / United States |
| USD/JPY | United States / Japan |
| GBP/USD | United Kingdom / United States |
| USD/CHF | United States / Switzerland |
| USD/CAD | United States / Canada |
| AUD/USD | Australia / United States |
| NZD/USD | New Zealand / United States |
Cross Currency Pairs or Minor Pairs
Cross currency pairs or cross-rates; currency pairs that include any two of the major currencies except the US dollar. e.g. EUR/YEN, GBP/CAD.
Euro Crosses
| Currency Pair | Countries |
|---|---|
| EUR/CHF | Europe / Switzerland |
| EUR/GBP | Europe / United Kingdom |
| EUR/CAD | Europe / Canada |
| EUR/AUD | Europe / Australia |
| EUR/NZD | Europe / New Zealand |
| EUR/SEK | Europe / Sweden |
| EUR/NOK | Europe / Norway |
Yen Crosses
| Currency Pair | Countries |
|---|---|
| EUR/JPY | Europe / Japan |
| GBP/JPY | United Kingdom / Japan |
| CHF/JPY | Switzerland / Japan |
| CAD/JPY | Canada / Japan |
| AUD/JPY | Australia / Japan |
| NZD/JPY | New Zealand / Japan |
Pound Crosses
| Currency Pair | Countries |
|---|---|
| GBP/CHF | United Kingdom / Switzerland |
| GBP/AUD | United Kingdom / Australia |
| GBP/CAD | United Kingdom / Canada |
| GBP/NZD | United Kingdom / New Zealand |
Other Crosses
| Currency Pair | Countries |
|---|---|
| AUD/CHF | Australia / Switzerland |
| AUD/CAD | Australia / Canada |
| AUD/NZD | Australia / New Zealand |
| CAD/CHF | Canada / Switzerland |
| NZD/CHF | New Zealand / Switzerland |
| NZD/CAD | Switzerland/Canada |
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.