Use of Currency Pairs in Forex Trading

In forex market, you buy or sell currency in pairs with the help of a broker. The forex market determines and sets the rates of currencies. Currencies have different rates and these rates fluctuate constantly. The profit and loss of the trader depends on these fluctuations and these fluctuations are due to the forex trading news. for more forex trading tips check out our forex education section.

Currency pairs:

Pairs of currency are involved in fx market. For example British pound and Japanese Yen is a pair. there are different forex market open time for each session. You can trade in any pair that suits your requirements in these forex market times. Stock market tradings are different.

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Major Currency Pairs:

Trade is done in all currencies. However some cuurencies are traded more frequently as compared to others. Some widely traded pairs of currencies are called Major Currency pairs. The following are the most liquid currency pairs of the world. For more forex trading tips check out our forex education section.

1. EUR/USD
2. USD/JPY
3. USD/CHF
4. USD/CAD
5. AUD/USD

 All the major currency pairs have U.S. dollar involved in the trade.

Minor Currency Pairs:

The trading currency pairs that do not have U.S. dollars involved in trade are referred as the trade of cross- currency pairs. Similarly in all cross-currency pairs, some currency pairs are more traded as compared to others. Such main cross- currencypairs are termed as Minor trading Currency pairs.

These are:

1. EUR/CHF
2. EUR/GBP
3. EUR/JPY
4. GBP/JPY
5. GBP/CHF
6. GBP/AUD
7. AUD/CHF

Exotic Currency Pairs:

The currency pairs which have one major currency and other one is the currency of any emerging country like Brazil. Some prominent Exotic currency pairs are:

1. USD/BRL
2. USD/HKD
3. USD/SAR

G10 Currencies:

The most actively traded currencies are termed as G10 currencies. These currencies include:

1. Dollar of U.S.A
2. Euro
3. Pound
4. yen
5. AUD Dollar
6. Dollar of New Zealand
7. Canadian dollar
8. Franc
9. Krone of Norway
10. krone of Denmark

The Scandies:

The currenciesof Denmark, Sweden and Norway are collectively called as “The Scandies”.

BRIICS:

BRIICS stands for the currencies of Brazil, Russia, India, Indonesia, China and South Africa.

Thus you have a wide range of currencies to decide for your investment, a wise decision in Forex can help you earn heaps of profit. Therefore analyze carefully and decide wisely. For more forex trading tips check out our forex education section.