Major Currency Pairs

Currency pairs fall into three categories: majors, minors, and exotics.

Major Pairs

Majors involve the US dollar paired with another major economy's currency. They offer the tightest spreads and highest liquidity.

• EUR/USD (Euro / US Dollar) — the most traded pair globally
• GBP/USD (British Pound / US Dollar) — known for sharp movements
• USD/JPY (US Dollar / Japanese Yen) — sensitive to Asian session activity
• USD/CHF (US Dollar / Swiss Franc) — a safe-haven pair
• AUD/USD (Australian Dollar / US Dollar) — tied to commodity prices
• USD/CAD (US Dollar / Canadian Dollar) — correlated with oil prices
• NZD/USD (New Zealand Dollar / US Dollar) — influenced by agriculture

Minor Pairs (Crosses)

Minors do not include the US dollar. They typically have wider spreads.

• EUR/GBP, EUR/JPY, GBP/JPY, EUR/CHF, GBP/CHF

Exotic Pairs

Exotics pair a major currency with a developing economy's currency. Spreads are wide and liquidity is lower.

• USD/ETB (US Dollar / Ethiopian Birr) — not freely traded on forex markets
• USD/ZAR (US Dollar / South African Rand)
• USD/TRY (US Dollar / Turkish Lira)
• USD/BRL (US Dollar / Brazilian Real)

Which Pairs Should Beginners Trade?

Start with one or two major pairs. EUR/USD is the best choice for beginners because: - Tightest spreads (lowest cost per trade) - Highest liquidity (easy to enter and exit) - Most educational resources available - Clear technical patterns

Avoid exotics until you have at least 6 months of experience. Their wide spreads and unpredictable movements can quickly erode a beginner's account.

Session-Based Pairs

Different pairs are more active during different trading sessions: - Asian Session: USD/JPY, AUD/USD, NZD/USD - London Session: EUR/USD, GBP/USD, EUR/GBP - New York Session: EUR/USD, USD/CAD, USD/JPY

Understanding which pairs to trade and when is a foundational skill. In the next lesson, we will cover bid/ask spreads — the real cost of trading.