In case you didn’t know, Forex is the most traded product in online trading today;
In this article we are going to briefly discuss the main Forex pair categories. We will explain what are the Major, Minor, Crosses and Exotic currency pairs. After reading this article you will be able to understand the difference between all categories and how to approach them when an opportunity arises.
Forex Majors
Forex majors are USD denominated currency pairs, high value global currencies such as EUR, GBP, JPY, CAD, CHF, AUD, NZD where USD is at one side as a base or a quote currency. This pair is known as a major currency pair.
As these currencies are from highly stable world economies, they are more liquid than any other pairs. An estimated trade value of these major currency pairs make up almost 80% of the total global Forex trade.
| MAJOR PAIRS | COUNTRIES | NICKNAME | VOLATILITY |
| EUR/USD | Euro-Zone / United States | EURO | High (European & US Session) |
| GBP/USD | United Kingdom / United States | CABLE | High (London and US Session) |
| USD/JPY | United States / Japan | YEN | High (Asian and US Session) |
| USD/CAD | United States / Canada | LOONIE | High (US Session) |
| USD/CHF | United States/ Switzerland | SWISSY | Medium (European and US Session) |
| AUD/USD | Australia / United States | AUSSIE | Medium (Asian and US Session) |
| NZD/USD | New Zealand / United States | KIWI | Medium (Asian and US Session) |
Minor or Cross Currency Pairs
In simple terms, currency pairs that don’t contain USD as a base or quote currency but have one of the high valued currencies such as EUR, GBP, JPY, CAD, CHF, AUD, NZD, are known as a minor or cross currency pair.
While majors make up the most of the Forex market, do not ignore the minor currency pairs as they make up the rest of the market. Some minor currency pairs such as EURGBP, EURJPY and GBPJPY are among the favorites for many traders and highly liquid as majors.
| EURO CROSSES | COUNTRIES | NICKNAME | VOLATILITY |
| EUR/CHF | Euro-Zone / Switzerland | Euro Swissy | Medium |
| EUR/GBP | Euro-Zone / United Kingdom | Euro Pound | Medium |
| EUR/CAD | Euro-Zone / Canada | Euro Loonie | Medium-High |
| EUR/AUD | Euro-Zone / Australia | Euro Aussie | High |
| EUR/NZD | Euro-Zone / New Zealand | Euro Kiwi | Medium |
| EUR/JPY | Euro-Zone / Japan | Euro Yen or Yuppy | High |
| POUND CROSSES | COUNTRIES | NICKNAME | VOLATILITY |
| EUR/GBP | Euro-Zone / United Kingdom | Euro Pound | Medium |
| GBP/JPY | United Kingdom / Japan | Pound Yen” or “Guppy | High |
| GBP/CHF | United Kingdom / Switzerland | Pound Swissy | Medium |
| GBP/AUD | United Kingdom / Australia | Pound Aussie | Medium-High |
| GBP/CAD | United Kingdom / Canada | Pound Loonie | Medium |
| GBP/NZD | United Kingdom / New Zealand | Pound Kiwi | Medium-High |
| YEN CROSSES | COUNTRIES | NICKNAME | VOLATILITY |
| EUR/JPY | Euro-Zone / Japan | Euro Yen or “Yuppy | High |
| GBP/JPY | United Kingdom / Japan | Pound Yen or Guppy | High |
| CHF/JPY | Switzerland / Japan | Swissy Yen | Medium |
| CAD/JPY | Canada / Japan | Loonie Yen | High |
| AUD/JPY | Australia / Japan | Aussie Yen | Medium-High |
| NZD/JPY | New Zealand / Japan | Kiwi Yen | Medium |
| OTHER CROSSES | COUNTRIES | NICKNAME | VOLATILITY |
| AUD/CHF | Australia / Switzerland | Aussie Swissy | Medium-High |
| AUD/CAD | Australia / Canada | Aussie Loonie | Medium-High |
| AUD/NZD | Australia / New Zealand | Aussie Kiwi | Medium-Low |
| CAD/CHF | Canada / Switzerland | Loonie Swissy | Medium-Low |
| NZD/CHF | New Zealand / Switzerland | Kiwi Swissy | Medium-Low |
| NZD/CAD | New Zealand / Canada | Kiwi Loonie | Medium-Low |
Exotic Currency Pairs
Exotic currency pairs refer to those from emerging economies such as Denmark, Hong Kong, Singapore, Malaysia, Thailand, Brazil, Mexico, India, Pakistan etc. Exotic currency pairs are comprised of one major currency paired with the currency of a developing nation. These pairs are less liquid and are always traded with caution.
| EXOTIC PAIRS | COUNTRIES | NICKNAME | VOLATILITY |
| USD/HKD | United States / Hong Kong | Dollar HKD | Low |
| USD/SGD | United States / Singapore | Dollar Sing | Low |
| USD/ZAR | United States / South Africa | Dollar Rand | Low |
| USD/THB | United States / Thailand | Dollar Baht | Low |
| USD/MXN | United States / Mexico | Dollar Peso | Medium-Low |
| USD/DKK | United States / Denmark | Dollar Krone | Low |
| USD/SEK | United States / Sweden | Dollar Swedish Krone | Low |
| USD/NOK | United States / Norway | Dollar Norwegian Krone | Low |
| USD/INR | United States / India | Dollar Rupee | Very Low |
| GBP/INR | United Kingdom / India | Pound Rupee | Very Low |
To read more articles take a look at our Forex Education section.