Introduction of forex currency pairs
Do you know that forex is the largest and most liquid market among the world’s financial markets? Do you know that the daily volume of the forex market is several trillion dollars? This attractive market is based on the buying and selling of currency pairs of different countries for years, which has attracted different people from all over the world, and practically the job of these people is trading.
A currency pair means two different currencies, for example, the dollar and the euro, which are equivalent to each other. In fact, the price of one currency is determined against another.
The concept of currency pairs:
In the forex market, you cannot buy a currency and store it, a currency pair means buying a base currency and delivering the currency against it! Only this process is possible with currency exchange. For example, in the EUR/JPY currency pair, how much Japanese yen will you receive by selling 1 unit of Euro!
In currency pairs, the first currency (left side) is always called the base currency, and the desire (right side) is its opposite desire. BUY transactions mean buying the base currency and selling the counter currency, and vice versa in buying and selling, it means selling the base currency and buying the counter currency…
Types of currency pairs in the forex market
Major currency pairs
Secondary currency pairs
Unusual currency pairs
Major currency pairs:
85% of the daily exchanges of the forex market are only on the main currency pairs! We have 7 main currency Pairs, the US dollar is on one side of all the main currency pairs. These currency pairs are also called (Major Pairs)…
| The name of the currency pair | abbreviation | Alias in Forex |
| Euro – US Dollar | EUR/USD | Fiber |
| British pound – US dollar | GBP/USD | Cable |
| New Zealand dollar – US dollar | NZD/USD | Kiwi |
| US Dollar – Japanese Yen | USD/JPY | Gopher |
| US Dollar – Swiss Franc | USD/CHF | Swissy |
| US dollar – Canadian dollar | USD/CAD | Loonie |
| Australian dollar – US dollar | AUD/USD | Aussie |
Secondary currency pairs:
Unlike the main currency pairs, which must have the US dollar on one side, in the secondary or minor currency pairs, there is no US dollar in any of them, although these currency pairs have a lower trading volume than the main currency pairs and there should be times on the currency pairs Trade the secondary where there is liquidity.
Statistics show that the euro, pound and Japanese yen account for the largest volume of minor currency pairs.
| The name of the currency pair | Abbreviation |
| Euro – British pound | EUR/GBP |
| Euro – Japanese yen | EUR/JPY |
| Euro – Swiss Franc | EUR/CHF |
| Euro – Australian dollar | EUR/AUD |
| Euro – Canadian Dollar | EUR/CAD |
| Euro – New Zealand Dollar | EUR/NZD |
| British pound – Australian dollar | GBP/AUD |
| British pound – Canadian dollar | GBP/CAD |
| British pound – Swiss franc | GBP/CHF |
| British pound – Japanese yen | GBP/JPY |
| Australian Dollar – Swiss Franc | AUD/CHF |
| Australian dollar – New Zealand dollar | AUD/NZD |
| Australian Dollar – Japanese Yen | AUD/JPY |
| Australian dollar – Canadian dollar | AUD/CAD |
| Canadian dollar – Japanese yen | CAD/JPY |
| New Zealand dollar – Canadian dollar | NZD/CAD |
| New Zealand Dollar – Japanese Yen | NZD/JPY |
| New Zealand Dollar – Swiss Franc | NZD/CHF |
| Swiss Franc – Japanese Yen | CHF/JPY |
Unusual currency pairs:
Usually, these currency pairs are formed from a base and main currency and a developing currency (developing economies), the volume of their transactions is low and their transaction costs are higher than the main and secondary currency pairs. Exotic currencies are called exotic currency pairs.
An example of unusual currencies for familiarization…
| The name of the currency pair | Abbreviation |
| Australian dollar – Mexican peso | AUD/MXN |
| British Pound – South African Rand | GBP/ZAR |
| US dollar – Hong Kong dollar | USD/HKD |
| Japanese yen – Norwegian krone | JPY/NOK |
| New Zealand dollar – Singapore dollar | NZD/SGD |
| Euro – Turkish lira | EUR/TRY |
What is the best currency pair to trade?
It is better to choose the main currency pairs for trading, because the volume of their transactions is very high, as a result, the spread decreases, the high volume of transactions makes rapid movements (manipulation in the market) close to zero. The forex market is full of turbulence, in addition to being familiar with technical and fundamentals, you should definitely be familiar with capital management and psychology to stay in the market!
