Forex or foreign exchange trading involves buying and selling currency pairs. There are a total of 28 forex pairs that are widely used in the financial markets. These forex pairs are divided into three categories: major, minor, and exotic. In this article, we will explain what these 28 forex pairs are and how they are used in trading.It covers the major pairs of forex including USD/JPY, EUR/USD, USD/CHF, GBP/USD, AUD/USD, NZD/USD, EUR/CAD, GBP/CAD, and many more.

Major Forex Pairs

The major forex pairs are the most traded currency pairs in the world. These pairs are made up of the US dollar and another major currency. The seven major forex pairs include,

1. EUR/USD – Euro/US dollar
2. USD/JPY – US dollar/Japanese yen
3. GBP/USD – British pound/US dollar
4. USD/CHF – US dollar/Swiss franc
5. AUD/USD – Australian dollar/US dollar
6. USD/CAD – US dollar/Canadian dollar
7. NZD/USD – New Zealand dollar/US dollar
These pairs are considered major because they have high liquidity, which means they have more buyers and sellers in the market. Major forex pairs also have lower spreads, which is the difference between the bid and ask price, making them more cost-effective to trade.

Minor Forex Pairs

The minor forex pairs are also known as cross-currency pairs. These pairs do not include the US dollar, but they include other major currencies such as the euro, yen, and pound. The minor forex pairs are less liquid than the major pairs, which means the spreads are usually wider. The minor forex pairs include:

1. EUR/GBP – Euro/British pound
2. EUR/CHF – Euro/Swiss franc
3. EUR/JPY – Euro/Japanese yen
4. GBP/JPY – British pound/Japanese yen
5. CHF/JPY – Swiss franc/Japanese yen
6. AUD/JPY – Australian dollar/Japanese yen
7. CAD/JPY – Canadian dollar/Japanese yen
8. NZD/JPY – New Zealand dollar/Japanese yen
9. AUD/NZD – Australian dollar/New Zealand dollar
10. AUD/CHF – Australian dollar/Swiss franc
11. GBP/CHF – British pound/Swiss franc
12. CAD/CHF – Canadian dollar/Swiss franc

Exotic Forex Pairs

The exotic forex pairs include currencies from countries that are not considered major economic powers. These pairs have lower liquidity than the major and minor pairs, which means the spreads are much wider. The exotic forex pairs include:

1. EUR/TRY – Euro/Turkish lira
2. USD/TRY – US dollar/Turkish lira
3. USD/MXN – US dollar/Mexican peso
4. USD/ZAR – US dollar/South African rand
5. USD/HKD – US dollar/Hong Kong dollar
6. USD/SGD – US dollar/Singapore dollar
7. USD/THB – US dollar/Thai baht
8. USD/SEK – US dollar/Swedish krona
9. USD/DKK – US dollar/Danish krone
Exotic forex pairs are not recommended for beginner traders because they have high volatility and can be unpredictable. However, experienced traders may use these pairs to diversify their portfolio and take advantage of market opportunities.

How Many Forex Pairs Are There?

In reality, there are over 2,300 forex pairs which include all possible crosses with majors, minors and exotics. You’ll only ever see about 5% of these on a trading platform because the other 95% are really illiquid.

Which Forex Pairs to Trade?

This is a difficult question, it’s kind of like which car should you drive – everyone has their preferences.

The majors are the cheapest to trade due to the sheer volume traded each day. To find out what you should trade is by simply loading up a platform and going through each currency pair and figuring out whether or not it fits your trading style.

Conclusion:  If you’re interested in trading foreign exchange, you’ll need to understand the forex market, the global economy, the world’s currencies, and their relationships with one another.

With this comprehensive list of 28 major forex pairs, you’ll know exactly which pairs to watch, trade, and invest in.

This is the perfect guide to learn more about the forex market.

If you found this article helpful, you should check out some of the other articles below:

If you like this post and want to share the same with your friends you may follow us on our social media accounts on Instagram, Twitter, and Facebook 

All Comments

No Comments