Forex Trading For Beginners

All types of forex currency pairs

A forex currency pair refers to the pairing of two currencies in a forex market whose value is relative to each other is called currency pair in the forex

There are 28 currency pairs in forex including major and minor forex currency pairs.

In the forex market, forex currency pairs are divided into three main types based on trading activity, liquidity, and volume worldwide. The value of each currency is relative to other currency in a currency pair. In the forex market, we are buying one currency and selling other currency simultaneously during a forex trade.

Three types of currency pairs are following

  • Major currency pairs
  • Minor currency pairs
  • Exotic currency pairs

Forex major currency pairs

The currency pair which includes the US dollar as a base or quote currency is called the forex major currency pair. Major currency pairs are the most widely traded currency pairs and highly liquid.

There are many benefits of major currency pairs.

  • Highly liquid
  • High volume
  • Low spread
  • Low broker commission
forex major currency pairs

7 major forex currency pairs are following:

Currency PairCurrency Name
EURUSDEuro / US Dollar
USDCHFUS Dollar / Swiss France
AUDUSDAustralian Dollar / US Dollar
GBPUSDBritish Pound / US Dollar
NZDUSDNew Zealand Dollar / US Dollar
USDJPYUS Dollar / Japanese Yen
USDCADUS Dollar / Canadian Dollar
forex major currency pairs

Forex minor currency Pairs

The currency pair which does not include US dollar currency is called forex minor currency pair.

Minor currency pairs do not provide all the benefits like major currency pairs do but they are still good to trade in forex. There are 21 minor currency pairs in forex. GBP, JPY, and EUR are the most widely traded minor currencies.

Currency PairCurrency name
EURGBPEuro / British Pound
EURCADEuro / Canadian Dollar
EURAUDEuro / Australian Dollar
EURNZDEuro / New Zealand Dollar
EURCHFEuro / Swiss France
EURJPYEuro / Japanese Yen
GBPJPYBritish Pound / Japanese Yen
AUDJPYAustralian Dollar / Japanese Yen
NZDJPYNew Zealand Dollar / Japanese Yen
CADJPYCanadian Dollar / Japanese Yen
CHFJPYSwiss France / Japanese Yen
GBPCADBritish Pound / Canadian Dollar
GBPAUDBritish Pound / Australian Dollar
GBPNZDBritish Pound / New Zealand Dollar
GBPCHFBritish Pound / Swiss France
AUDNZDAustralian Dollar / New Zealand Dollar
AUDCADAustralian Dollar / Canadian Dollar
AUDCHFAustralian Dollar / Swiss France
NZDCHFNew Zealand Dollar / Swiss France
CADCHFCanadian Dollar / Swiss France
NZDCADNew Zealand Dollar / Canadian Dollar
forex minor currency pairs

forex exotic currency pairs

The pair of a major currency and currency of a developing country (Turkey, Singapore, Mexico, etc.)  is called exotic currency pair.

There are many cons of trading exotic currency pairs due to large spread, high commission rates and low liquidity.

If you are intraday trader then you should focus only on minor and major currency pairs.

Currency PairCurrency Name
USDHKDUS Dollar / Hong Kong Dollar
USDSGDUS Dollar / Singapore Dollar
USDMXNUS Dollar / Mexican Peso
USDTRYUS Dollar / Turkish Lira
USDNOKUS Dollar / Norwegian Krone
USDZARUS Dollar / South African Rand
Exotic Currency pairs

Best Currency pairs to trade

To choose a currency pair, three parameters should be considered.

  • Liquidity
  • Volume
  • Broker spread/commission

EURUSD is the best currency pair to trade. It is the most widely traded currency pair in the world.

Overall, there are three best currency pairs to trade (for beginners too)

  • EURUSD
  • GBPUSD
  • USDJPY

Freedom from blind reactivity begins with self-awareness

Yvan Byeajee

I hope you will like this Article. For any Questions Comment below, also share by below links. Use Tradingview for technical analysis instead of mt4.

Note: All the viewpoints here are according to the rules of technical analysis and for educational purposes only. we are not responsible for any type of loss in forex trading.

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