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!