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    How are currencies traded?

    6 Minutes
    Updated March 20, 2023 04:01

    All forex trading is expressed as a combination of the two currencies being exchanged. There are three categories of currency pairs:

      1. the “majors

      2. the “crosses

      3. 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 PairCountries
    EUR/USDEurope / United States
    USD/JPYUnited States / Japan
    GBP/USDUnited Kingdom / United States
    USD/CHFUnited States / Switzerland
    USD/CADUnited States / Canada
    AUD/USDAustralia / United States
    NZD/USDNew 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 PairCountries
    EUR/CHFEurope / Switzerland
    EUR/GBPEurope / United Kingdom
    EUR/CADEurope / Canada
    EUR/AUDEurope / Australia
    EUR/NZDEurope / New Zealand
    EUR/SEKEurope / Sweden
    EUR/NOKEurope / Norway

    Yen Crosses

    Currency PairCountries
    EUR/JPYEurope / Japan
    GBP/JPYUnited Kingdom / Japan
    CHF/JPYSwitzerland / Japan
    CAD/JPYCanada / Japan
    AUD/JPYAustralia / Japan
    NZD/JPYNew Zealand / Japan

    Pound Crosses

    Currency PairCountries
    GBP/CHFUnited Kingdom / Switzerland
    GBP/AUDUnited Kingdom / Australia
    GBP/CADUnited Kingdom / Canada
    GBP/NZDUnited Kingdom / New Zealand

    Other Crosses

    Currency PairCountries
    AUD/CHFAustralia / Switzerland
    AUD/CADAustralia / Canada
    AUD/NZDAustralia / New Zealand
    CAD/CHFCanada / Switzerland
    NZD/CHFNew Zealand / Switzerland

    * 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.