Major Currency Pairs
Major pairs are the most traded and typically offer the highest liquidity, making them suitable for most traders. They include pairs like EUR/USD, GBP/USD, USD/JPY, and USD/CHF.
Minor Currency Pairs
Minor pairs, also known as cross-currency pairs, do not include the US Dollar but are still highly traded. Examples include EUR/GBP, EUR/AUD, and GBP/JPY.
Exotic Currency Pairs
Exotic pairs involve one major currency and one currency from a developing or smaller economy. While they can offer higher volatility and potential returns, they also come with increased risk.
Factors to Consider When Choosing Currency Pairs
When selecting currency pairs to trade, consider factors such as liquidity, volatility, trading hours, and economic indicators. Always be aware of the risks involved in forex trading.
