Major Currency Pairs What Are the Forex Majors
The actual trading in the Forex market takes place in currency pairs. You either sell on currency for another or buy a currency with another. Each pair is made up of a base and a quote currency. In the EUR/USD pair, the Euro is the base and the US dollar is the quote.
Among Forex pairs, there are majors and exotics. There are several definitions of major pairs but the consensus states 6 or 7 pairs. The major currency pairs are those in which the trading volume if the highest. In fact, over 80% of the entire volume of the market takes place among these pairs so they are the most liquid and the least susceptible to market manipulation or outside factors.
The Forex majors are:
EUR/USD - The Euro and the US dollar.
USD/JPY - US dollar and the Japanese Yen.
USD/CHF - The dollar and the Swiss Franc.
USD/CAD - US dollar and the Canadian dollar.
AUD/USD - Australian dollar and the American dollar.
GBP/USD - Great British pound and the Dollar.
Many people also say that the NZD/USD is a major pair (involving the currencies of New Zealand and the US) although it carries a smaller percentage of the total volume.
Most trading tools, systems, and methods are based on the majors as they're the most predictable of the lot. If you're just starting out, it would be better to focus on these pairs and not experiment with the more volatile, less predictable exotic pairs.
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