What is major currency pairs and why you should trade it when you are newbies in forex market - Singapore Forex Trading, Singapore Forex Academy, Singapore Forex Association

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What is major currency pairs and why you should trade it when you are newbies in forex market

There are three types of currency pairs available across the globe; these are the major currency pairs, minor currency pairs, and the exotic currency pairs.

You should keep in mind that there are as many currency pairs as there are currencies in the world. The total number of existing currency pairs changes alongside the currencies that come and go.
Brokerage firms, such as Exness, offer you the opportunity to trade any existing currency pair in the world. All of the currency pairs are categorized according to the amount of volume being traded on a daily basis as a pair. We will be discussing them further in detail below.

Major Currency Pairs

All of the existing major currency pairs have the U.S. dollar (USD) on one side, either as the base currency or the quote currency. They are considered to be the most traded pairs in the foreign exchange market.
The major currency pairs also offer the lowest spread and are known to be the most liquid. The EUR/USD pair actually holds 30 percent of the entire trade volume of the foreign exchange market.
The major currency pairs include:
Currency PairCountries
EUR/USDEuro Zone / United States
GBP/USDUnited Kingdom / United States
NZD/USDNew Zealand / United States
USD/JPYUnited States / Japan
USD/CADUnited States / Canada
AUD/USDAustralia / United States
USD/CHFUnited States / Switzerland

Minor Currency Pairs

The minor currency pairs are also commonly referred to as cross-currency pairs or simply “crosses”. These currency pairs do not contain the U.S. dollar. Minor currency pairs are known to have slightly wider spreads and are not as liquid as the majors but still sufficiently liquid markets.
In the past, in order to obtain the desired currency, you will first have to convert your currency into U.S. dollars and then into the other currency you wish to obtain.
With the introduction of the minor currency pairs, there is no longer any need to conduct such a long process. The most actively traded minor currency pairs include the three major non-U.S. dollar currencies which are the euro, the UK Pound, and the Japanese Yen.
The minor currency pairs include:
Currency PairCountries
EUR/GBPEuro Zone / United Kingdom
EUR/AUDEuro Zone / Australia
EUR/CADEuro Zone / Canada
EUR/CHFEuro Zone / Switzerland
EUR/NZDEuro Zone / New Zealand
EUR/JPYEuro Zone / Japan
CAD/JPYCanada / Japan
AUD/JPYAustralia / Japan
NZD/JPYNew Zealand / Japan
CHF/JPYSwitzerland  / Japan
GBP/JPYUnited Kingdom  / Japan
GBP/CADUnited Kingdom  / Canada
GBP/AUDUnited Kingdom  / Australia
GBP/CHFUnited Kingdom  / Switzerland
CAD/CHFCanada / Switzerland
AUD/CADAustralia / Canada
NZD/CHFNew Zealand / Switzerland

Exotic Currency Pairs

The exotic currency pairs are made up of those in the emerging markets. There is a huge difference in the liquidity of this type of currency pairs when compared to the other two. The spreads of exotic currency pairs are also much wider.
Exotic currency pairs are usually made up of one major currency and one currency of an emerging economy, such as Hong Kong, Singapore, or Mexico.
The exotic currency pairs include:
Currency PairCountries
USD/SGDUnited States / Singapore
USD/HKDUnited States / Hong Kong
USD/THBUnited States / Thailand
USD/SEKUnited States / Sweden
USD/DKKUnited States / Denmark
EUR/TRYEuro Zone / Turkey
JPY/NOKJapan / Norway
NZD/SGDNew Zealand / Singapore
AUD/MXNAustralia / Mexico
GBP/ZARUnited Kingdom / South Africa