What is a currency pair?
Forex trading is the purchase of a currency simultaneously and the sale of other currency. Currency is traded through a broker or dealer and in a pair.
For example Euro and USD Dollar pair of EUR/USD or British Pound and Japanese Yen’s wider GBP/JPY.
When you do forex trading, you will have to buy/sell through pair.
Imagine, the two countries have economic status on both sides of this rope. Based on the exchange rate rise, when a currency is strong.
Major currency pairs:
The following currency pairs are considered as major currency pairs. These currency pairs are traded in USD pair. These major pairs have the liquidity of most and they are the most traded in the world.
Major cross-currency or minor currency pairs:
Currency pairs are called cross-currency pair or just cross pair except for dollars pair. The main crosses are also known as the minor currency pairs. The most-traded cross pairs come from – EUR, GBP, and JPY.
The currency pair is added to the pair as a currency with a major currency is called an exotic pair.
In some forex brokers, these currency pairs can be traded. They are not traded like major and cross-pairs.
Exotic pairs have two or three times more than EUR/USD or USD/JPY. So if you want to trade these Exotic Pairs, then think about it.