Module 1: Forex Fundamentals
Major, Minor and Exotic Pairs
5 min read
Pairs are grouped by how much they trade, which affects spreads and volatility.
Majors
Major pairs include the US dollar and another large economy's currency: EUR/USD, GBP/USD, USD/JPY, USD/CHF, USD/CAD, AUD/USD and NZD/USD. They usually have the deepest liquidity and tightest spreads.
Minors (crosses)
Minor pairs combine two major currencies without the dollar, such as EUR/GBP, EUR/JPY or GBP/JPY. Spreads are typically a little wider.
Exotics
Exotic pairs combine a major currency with that of a smaller or emerging economy, such as USD/TRY or USD/ZAR. They can have much wider spreads, larger swings and sudden gaps. Beginners usually start with majors.
Key takeaways
- Majors all include the US dollar.
- Crosses pair two majors without the dollar.
- Exotics are often costlier and more volatile.
Educational content only, not financial advice. Trading forex and CFDs involves significant risk of loss.