A currency pair is the price of onein relation to another. Currency pairs are traded on the .
Currencies are always traded in pairs, so if you buy one currency you will automatically be selling another and vice versa.
For example, if you decide to buy EUR/USD, you purchaseand pay for them with . If you close your , you sell your euros and automatically purchase back the US dollars.
The first currency in a currency pair is called the base currency. The second currency is called the quote currency.
Trading currency pairs
To start learning how to trade currencies, we recommend our forex beginner strategy:
At tradimo, we also have a dedicated forum on currency trading:
What are the major currency pairs?
The major currency pairs all contain the US dollar and are the most traded pairs on the forex market. For this reason they are very liquid.
Shortcut currencies FX jargon
|US dollar/Japanese yen||yen|
|US dollar/Swiss franc||Swissy|
|US dollar/Canadian dollar||Loonie|
|Australian dollar/US dollar||Aussie|
|New Zealand dollar/US dollar||Kiwi|
Major cross currency pairs
When a pair contains two of the major currencies, but not the USD, it is considered to be a cross currency pair. The most commonly traded cross currency pairs are a combination of EUR, JPY and GBP.
|EUR/NZD||euro/New Zealand dollar|
|GBP/JPY||Pound sterling/Japanese yen|
|CHF/JPY||Swiss franc/Japanese yen|
|CAD/JPY||Canadian dollar/Japanese yen|
|AUD/JPY||Australian dollar/Japanese yen|
|NZD/JPY||New Zealand dollar/Japanese yen|
|GBP/CHF||pound sterling/Swiss franc|
|GBP/AUD||pound sterling/Australian dollar|
|GBP/CAD||pound sterling/Canadian dollar|
|GBP/NZD||pound sterling/New Zealand dollar|
|AUD/CHF||Australian dollar/Swiss franc|
|AUD/CAD||Australian dollar/Canadian dollar|
|AUD/NZD||Australian dollar/New Zealand dollar|
|CAD/CHF||Canadian dollar/Swiss franc|
|NZD/CHF||New Zealand dollar/Swiss franc|
|NZD/CAD||New Zealand dollar/Canadian dollar|
The exotic pairs
Exotic pairs are the combination between one major currency and another currency that is not a major. The major currency is usually paired with a currency from an emerging economy, such as Brazil, Mexico, India or South Africa, or a smaller, less economically strong country, such as the Czech Republic or Norway.
They are not as frequently traded as major or cross pairs, so the broker could charge a wider spread.
Examples of exotic pairs that are usually offered by brokers:
|USD/HKD||US dollar/Hong Kong dollar|
|USD/SGD||US dollar/Singapore dollar|
|USD/ZAR||US dollar/South African rand|
|USD/THB||US dollar/Thailand baht|
|USD/MXN||US dollar/Mexican peso|
|USD/DKK||US dollar/Danish krone|
|USD/SEK||US dollar/Swedish krone|
|USD/NOK||US dollar/Norwegian krone|
To learn more about the economic impact on currency pairs, visit our lesson on.
You can also visit the forum to discuss how currency pairs are trading in the current market conditions: