There are hundreds of currencies in the world, and each has a three letter symbol. American Dollars are USD,
Euros are EUR, Swiss Francs are CHF, British Pounds are GBP and onwards to all the currencies.
Currencies are divided into two main sorts – Major currencies and minor ones. The major currencies are
derived from the most powerful economies around the globe – the US, Japan, the UK, the Euro Zone, Canada,
Australia, Switzerland and New Zealand. Together with the other currencies they create forex pairs.
When going to a store to buy groceries, we need to exchange one valuable asset for another – money for milk,
for example. The same goes for trading forex – we buy or sell one currency for the other. The currencies in
the pairs are referred to as one against another.
There are three types of forex pairs; Major pairs, Minor pairs and Exotic pairs. The major pairs always
involve the USD, and are the most traded ones. The seven major pairs are EURUSD, USDJPY, GBPUSD, USDCAD,
USDCHF, AUDUSD and NZDUSD. In the minor pairs the major currencies are traded between each
other, excluding the USD. These can be EURGBP, GBPJPY and others. The exotic pairs have one major currency
and one minor, such as EURTRY, USDNOK and many more.