CURRENCY PAIRS

MAJOR PAIRS:

The currency pairs listed below are all considered majors

because they contain the U.S Dollar; which is the most frequently
traded currency. The majors are the most liquid and widely traded
currency pairs in the world; which means they have the lowest
spread.

EUR / USD
USD / JPY
GBP / USD
USD / CHF
USD / CAD
AUD / USD
NZD / USD

MINOR PAIRS:

Currency pairs that do not contain the U.S Dollar are known
as cross-currency pairs/minors. The most actively traded
crosses are made from the three major non-USD currencies,
which are: EUR, JPY, and GBP.

EUR / CHF
EUR / GBP
EUR / CAD
EUR / JPY
GBP / JPY
AUD / JPY
GBP / AUD

and many more!

EXOTIC PAIRS:

Pairs that are made up of one major currency, paired with an

emerging economy; such as Brazil or Mexico are known as
exotic pairs. Understand that these pairs are not traded nearly
as much as the majors or minors, so the transaction costs are
MUCH higher.

USD / BRL
USD / MXN
USD / ZAR
USD / THB

HOW TO READ CURRENCY PAIRS:

Currencies are usually quoted in pairs like this: EUR / USD.

This is comparing the value of the Euro vs. the U.S Dollar.
The first currency in a pair is called the BASE CURRENCY.

Example:
If you believe EUR will rise in comparison to the U.S Dollar, you
would buy EUR / USD, since EUR is the base currency.

If you believe the U.S Dollar will rise in comparison to the EUR,
seeing as how the quote was created as EUR / USD, you would
have to sell EUR / USD because you are trading based off the
BASE CURRENCY. Selling EUR / USD essentially means you
are selling EUR, in comparision to the U.S Dollar because you
believe the U.S Dollar will be stronger.
HOW TO READ CURRENCY PAIRS:

Example:
EUR / USD = 1.05650, which means 1 EUR = 1.05 USD.

More Examples:
GBP / USD = 1.50422 1 GDP = 1.50 USD
USD / CAD = 1.28050 1 USD = 1.28 CAD

UNITED STATES:

As you see above, USD is one-half of every major currency pair.

Since the majors comprise of 75% of all trades, it is imperative to
constantly pay attention to the U.S Dollar.

• The U.S Dollar is the reserve currency of the world.

• The United States economy is the largest economy
in the world.
• The United States has the largest and most liquid financial
markets in the world.
• The U.S Dollar is the medium of exchange for many
cross-border transactions.