Types of Currency Pairs in Forex

[Suba]

When we begin to learn about the world of forex, the first basic step we must recognize and understand is the types of currency pairs. In the world of forex, all currencies from around the world issued by central banks of all countries can be grouped into three types:

1. Major Pairs
Major pairs always involve the USD paired with another currency, either as the base currency or simply as the quote currency. For example:
USD/JPY = USD as the base currency.
EUR/USD = USD as the quote currency.

2. Minor Pairs
Minor pairs are also often referred to as cross currency pairs, as these pairs do not involve the USD but only pair strong currencies from major countries. For example, AUD/JPY, GBP/JPY, EUR/JPY, EUR/GBP, etc.

3. Exotic Pairs
Exotic pairs are often considered to be a group of currencies where the USD and another major country are paired with a currency from a developing country. For example: USD/SGD, USD/SEK, USD/TRY, EUR/TRY, USD/ZAR, etc.

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[gwolf666]

In the forex world, currencies are traded in pairs divided into three types: major, minor, and exotic. Major pairs always include the US dollar and are the most liquid; minor pairs do not include the dollar but are strong; and exotic pairs combine a major currency with one from a developing country, making them more volatile.