MAJORS
There are currency pairs that are more important than the rest. They are called Major currency pairs. They are the native money of the most powerful and influential world economies. Because they are traded globally, the forex pairs that they form are extremely active in the market.
MINORS
Then there are the Forex Minor pairs. These pairs are formed from the major currencies, but they don’t include the US dollar. They are also called Cross pairs or Crosses. Minors are not as actively traded as the Majors but still have very good liquidity.
EXOTICS
Last, we have all the remaining pairs. They are referred to as the Exotic currency pairs. They account for a small percentage of the total forex turnover and are less liquid. Here is just a small part of them:
The markets where exotic pairs are traded are less stable and there might be wild price swings and much wider spreads. They are much less liquid and might not be available with every broker. Despite all this, some exotic pairs are becoming more popular and ever more investors are trading them.
THE NICKNAMES
To make things more fun, some currencies and currency pairs have nicknames.
