Forex Trading

Major Currency Pairs: Buying and Selling Currency shares

What does buy and sell means in Currency exchange: Hello friends, welcome to Chapter 3 of Forex Trading. In this chapter, you will learn about buying and selling currency pairs.

Forex trading is nothing but simply buying of one currency and selling other. Currencies in Forex Trading are traded through a broker or you can say a dealer and these currencies are traded in pairs.

What does Buying a Currency pair?

Buying a currency pairs means buying a base currency by selling the quote currency. For example, if you are buying EUR/USD, then it means you are buying euro currency and by selling USD.  

What does Selling a currency pair means?

When you are selling a currency pair, that means, you are selling the Base Currency by buying the Quote Currency. For Example if you are selling EUR/USD, it means you are selling the Euros to buy USD. It’s so simple right!! 

You can imagine that each currency pair is constantly in a tug of war with one another currency on both side of the rope. Both currencies are pulling the rope to their side like as it happens in WAR. The rates of Exchange fluctuates based on the which currency is stronger at that moment.

What are the Major Currency Pairs

Below you will get the list of currency pairs in Forex. We have collected this list for your information so that you can also be aware about the various currency pairs and also currency pairs correlation . Currency pairs list major, minor etc are given in tabular format.

In this first table, you can see the Major Currency Pairs. These Currencies are termed as Major currencies because these Currencies are most frequently traded Currencies in the Forex Trading.

In this table, you can see U.S. dollar (USD) on one its one side and are the most frequently traded in forex trading.

EUR/USDEurozone / United States“euro dollar”
USD/JPYUnited States / Japan“dollar yen”
GBP/USDUnited Kingdom / United States“pound dollar”
USD/CHFUnited States/ Switzerland“dollar swissy”
USD/CADUnited States / Canada“dollar loonie”
AUD/USDAustralia / United States“aussie dollar”
NZD/USDNew Zealand / United States“kiwi dollar”

Major Cross-Currency Pairs or Minor Currency Pairs

The Currency pair which does not contain the U.S. dollar (USD) is known as the cross currency pairs or in simple word it also known as crosses.

The major crosses are also known as the minors. In this list the most active traded crosses have been derived from the three major non USD Currencies i.e EUR, JPY & GBP. In the table below you can see all the three currency crosses or you can say the cross currency pairs list is given below.

Euro Crosses: In this table, you can see the list of Euro Cross Currency Pairs with various other currencies.

EUR/CHFEurozone / Switzerland“euro swissy”
EUR/GBPEurozone / United Kingdom“euro pound”
EUR/CADEurozone / Canada“euro loonie”
EUR/AUDEurozone / Australia“euro aussie”
EUR/NZDEurozone / New Zealand“euro kiwi”
EUR/SEKEurozone / Sweden“euro stockie”
EUR/NOKEurozone / Norway“euro nockie”

Yen Crosses: In this table, you can see the list of Yen Cross Currency Pairs with various other currencies.

EUR/JPYEurozone / Japan“euro yen” or “yuppy”
GBP/JPYUnited Kingdom / Japan“pound yen” or “guppy”
CHF/JPYSwitzerland / Japan“swissy yen”
CAD/JPYCanada / Japan“loonie yen”
AUD/JPYAustralia / Japan“aussie yen”
NZD/JPYNew Zealand / Japan“kiwi yen”

Pound Crosses: In this table, you can see the list of Pound Cross Currency Pairs with various other currencies.

GBP/CHFUnited Kingdom / Switzerland“pound swissy”
GBP/AUDUnited Kingdom / Australia“pound aussie”
GBP/CADUnited Kingdom / Canada“pound loonie”
GBP/NZDUnited Kingdom / New Zealand“pound kiwi”

Other Crosses: In this table, you can see the list of other Currency Pairs with various other currencies.

AUD/CHFAustralia / Switzerland“aussie swissy”
AUD/CADAustralia / Canada“aussie loonie”
AUD/NZDAustralia / New Zealand“aussie kiwi”
CAD/CHFCanada / Switzerland“loonie swissy”
NZD/CHFNew Zealand / Switzerland“kiwi swissy”
NZD/CADNew Zealand / Canada“kiwi loonie”

Exotic Currency Pairs list:

The Exotic Currency Pairs are made up with one major currency pair which is paired with the currency of an emerging economy like Mexico, Hungary & Brazil. But these currencies are not traded in high volume as the major currencies are and due to which the transaction cost in trading these currencies are bit higher than the major currencies.

Below in the chart the list of exotic currency pairs is given. Besides major currencies, one should also know about the exotic currency pairs. So lets have look on various exotic currency pairs.

USD/BRLUnited States / Brazil“dollar real”
USD/HKDUnited States / Hong Kong
USD/SARUnited States / Saudi Arabia“dollar riyal”
USD/SGDUnited States / Singapore
USD/ZARUnited States / South Africa“dollar rand”
USD/THBUnited States / Thailand“dollar baht”
USD/MXNUnited States / Mexico“dollar mex”
USD/DKKUnited States / Denmark“dollar krone”
USD/SEKUnited States / Sweden“dollar stockie”
USD/NOKUnited States / Norway “dollar nockie”
USD/RUBUnited States / Russia“dollar ruble” or “Barney”
USD/PLNUnited States / Poland“dollar zloty”

The spreads provided on these currencies are two to three times higher than that of the major currencies like EUR/USD or USD/JPY have. So if you are planning to trade in exotic currencies, then you must know this fact.

List of G10 Currencies

In the table given below, you can see the G10 currencies. These currencies are the ten of the most heavily traded currencies in the world that’s why these currencies are also known as the world’s most liquid currencies.

Traders regularly buy and sell them in an open market with minimal impact on their own international exchange rates.

List of World’s most liquid Currencies

United StatesdollarUSD
European UnioneuroEUR
United KingdompoundGBP
New ZealanddollarNZD

List of BRIICS Currencies

BRIICS is the association of five major emerging national economies. The Countries that are associated with BRIICS are Brazil, Russia, India, Indonesia, China and South Africa.

South AfricarandZAR

When you BUY and SELL while trading in Forex? 

Before buying and selling any countries currency, one should keep in mind that the economy of the country is seems to be stronger in the coming future, then buy option can be chosen and vice versa.

For example, there are two countries A & B. Assume that the economy of country A is performing better than the economy of country B. In this case the currency of country A will be more in demand by the people and its price will also in this case go up.

Technical analysis in this scenario can easily give the buy signal and you can Buy the currency pair at this time if you think the base currency will APPRECIATE as compared to the quote currency and vice versa.

When to take position in the Forex Market

In Forex Trading, you should take the position only after getting the confirmation signal from technical analysis and never trade with any currency pair without any confirmation signal. If you will do this, then you have to suffer later.

Do you know that if forex is having the capacity to reward you, then it can also punish you just by emptying your trading account within seconds. So be aware while placing buy and sell order in forex trading.  

What is Long and Short Positions

 In Forex Long and Short Position means when you are buying a pair, it is said to be long the pair and when you are selling a pair, it is said to be short.

In Forex, short selling means when when you first sell any currency pair without having any bought position is known as short selling. In other words you can trade either by going long or by going short in forex trading. This is so amazing! right?

Conclusion: If you like the third chapter about major currency pairs, then share the post with your friends, you can also leave a comment below if having any doubt about currency pairs.

About the author



Leave a Comment

You cannot copy content of this page