When entering the Forex market, you need basic knowledge before you can trade. Specifically, you need to know what products are available to trade in the market. The article below, Learn Forex Trading will provide detailed information about the main currency pairs, the most traded currency pairs on the market. And give reasons why you should trade major currency pairs forex instead of minor or exotic pairs.
Learn general information about currency pairs forex
All assets traded in Forex are called instruments. currency pairs forex is one such tool. The term currency pair means that two currencies are being traded. In other words, it is the ratio of the price of one currency to another.
What is the definition of currency pairs forex?
There are 3 types of currency pairs: major pairs, minor pairs, and rare pairs. Major currency pairs are strong currency pairs of countries with powerful economies and are the most traded currency pairs in the foreign exchange market.
These currency pairs usually contain the USD. Such as: GBP/USD, USD/CHF, EUR/USD, USD/JPY, AUD/USD, NZD/USD, USD/CAD. These currency pairs have the following common characteristics:
- The trading volume of these currency pairs is large and has high liquidity.
- The spread is relatively low.
- There is a lot of news related to these forex pairs.
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Concept of currency pairs
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Meaning of major currency pairs
In the financial markets, currency pairs are used for trading and investing. When trading a currency pair, the trader is buying one currency and selling another. The meaning of major currency pairs can be divided into the following two categories:
- Economic significance: currency pairs in forex reflect the economic relationship between the two countries involved. For example, the EUR/USD pair reflects the economic relationship between the European Union and the United States. If the European Union’s economy is stronger than the United States economy, then the euro will be worth more than the US dollar.
- Financial significance: Currency pairs are used for trading and investing in the foreign exchange market. Traders and investors use currency pairs to profit from fluctuations in currency values.
Major currency pairs are highly liquid
Currency pairs forex major or simply the major currency pairs with the highest and most important liquidity, frequency of use, total trading volume, and volume indicators in the global market.
These are the most popular tools used by everyone – from beginners to experienced traders. Additionally, these currency pairs have the smallest spreads.
The main group of currency pairs includes the currencies of major economies in the world. These include the European Union, United States, Canada, United Kingdom, Switzerland, Japan, Australia and New Zealand. Specifically, the following currency pairs:
- AUD/USD
- EUR/USD
- USD/JPY
- GBP/USD
- USD/CHF
- USD/CAD
- NZD/USD
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Some major currency pairs
The composition of all 7 major currency pairs includes the US dollar, as the US dollar is the largest currency in the market. In some cases, brokers add more currency pairs to the majors, such as EUR/CHF, EUR/GBP, and GBP/JPY and some say there are 8 major currency pairs, which is not entirely accurate.
Pros and cons of currency pairs Forex
All currency pairs have different advantages and disadvantages. However, the solid advantage of major currency pairs stems from their popularity. You will find news related to these Forex pairs more easily. At the same time, its underlying economies have a regular economic calendar. Markets follow these schedules closely, creating opportunities for dramatic short-term price movements that you can predict.
Advantages of currency pairs forex
- High liquidity: The foreign exchange market is the financial market with the largest potential in the world. Daily trading volume can reach trillions of dollars. This means that currency pairs forex is highly liquid, making it easy for traders to buy and sell without being affected by large price differences.
- High-profit potential: currency pairs forex can fluctuate strongly, creating opportunities for traders to make large profits. However, the risks are also correspondingly high.
- Tradeable 24/5: The foreign exchange market operates 24 hours a day, 5 days a week, allowing traders to trade at any time.
- No intermediaries needed: Forex traders can trade directly with each other. No need to go through an intermediary like stock brokers. This helps save maximum transaction costs for traders.
Main disadvantages of currency pairs forex.
- High risk: currency pairs forex are highly volatile, creating opportunities to make large profits but also come with high risks. Traders need knowledge and experience to manage risk effectively.
- Expert knowledge: Forex trading requires certain specialized knowledge and skills. Traders need to learn and learn about the market, factors that affect currency values, trading strategies, etc. For example, when trading XAUUSD without knowledge, it is very easy to lose. hole.
- Trading psychology: Forex trading requires calmness and good psychological control. Traders should avoid trading when feeling stressed or anxious.
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currency pairs forex also has its advantages and disadvantages
What are the currency pairs to trade in Forex?
Which currency pairs to trade in Forex depends on many factors, including:
- Trading goals: Traders need to determine what their trading goals are. Want to invest for profit or protect assets?
- Knowledge and experience: Traders need to choose currency pairs that suit their level of knowledge and experience.
- Risk tolerance: Traders need to determine their risk tolerance to choose currency pairs with the appropriate risk level.
Here are some popular currency pairs forex suggestions for beginner traders:
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Major currency pairs
These are the most traded currency pairs in the market, highly liquid, and easy to predict. Typically: EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CAD, USD/CHF… These major currency pairs have high liquidity, meaning traders can easily buy and sell without being affected by large price differences. Major currency pairs also have moderate levels of volatility, creating opportunities for steady profits.
Cross currency pairs
These are currency pairs without USD such as EUR, CAD, CHF, AUD, GBP, JPY, and NZD. These cross pairs have less liquidity than the majors but have higher volatility, creating opportunities for big profits. Currency pairs forex crosses can be the right choice for experienced traders and high risk tolerance.

Strange currency pairs (foreign)
These are currency pairs consisting of one major currency and one currency from an emerging economy. For example: EUR/NOK, USD/THB, USD/NOK, EUR/SEK, USD/TRY. Exotic currency pairs have the least liquidity but the highest volatility. Creates opportunities to make big profits but also comes with high risks.
Epilogue
Above Learn Forex Trading has shared details about currency pairs forex with high liquidity. At the same time, we also give suggestions on which currency pairs to trade. Hopefully, the information and knowledge we share can partly help you have an overview from which you can choose the right currency pair for you.
Frequently asked questions?
What are forex currency pairs?
Forex currency pairs are a popular concept in the foreign exchange market. It describes the relationship between two currencies when trading.
What are the most popular currency pairs today?
The most popular currency pairs today include EUR/USD, GBP/USD, USD/JPY, USD/CHF, and AUD/USD.
Why are currency pairs important?
The currency pair determines the exchange rate between two currencies. It plays an important role in determining the profitability and risk of forex transactions. Being proficient in trading currency pairs can help you understand and predict fluctuations.