Major Currency Pairs
The currency pairs listed below are considered the “majors.”
These pairs all contain the U.S. dollar (USD) on one side and are the most frequently traded.
While there are EIGHT major currencies, there are only SEVEN major currency pairs.
Compared to the crosses and exotics, price moves more frequently with the majors, which provides more trading opportunities.
| CURRENCY PAIR | COUNTRIES | FX GEEK SPEAK |
|---|---|---|
| EUR/USD | Eurozone / United States | “euro dollar” |
| USD/JPY | United States / Japan | “dollar yen” |
| GBP/USD | United Kingdom / United States | “pound dollar” |
| USD/CHF | United States/ Switzerland | “dollar swissy” |
| USD/CAD | United States / Canada | “dollar loonie” |
| AUD/USD | Australia / United States | “aussie dollar” |
| NZD/USD | New Zealand / United States | “kiwi dollar” |
The majors are the most liquid in the world.
Liquidity is used to describe the level of activity in the financial market.
In forex, it’s based on the number of active traders buying and selling a specific currency pair and the volume being traded.
The more frequently traded something is the higher its liquidity.
For example, more people trade the EUR/USD currency pair and at higher volumes than the AUD/USD currency pair.
This means that EUR/USD is more liquid than AUD/USD.
Major Cross-Currency Pairs or Minor Currency Pairs
Currency pairs that include any two of the major currencies except the U.S. dollar are known as cross-currency pairs or simply as the “crosses.”
Major crosses are also known as “minors.”
While not as frequently traded as the majors, the crosses are still pretty liquid and still provide plenty of trading opportunities.