💱 Understanding Currency Pairs – Majors, Minors & Exotics

Learn how pairs work and which ones are best for beginners

When you trade Forex, you're not buying or selling a single currency — you're trading one currency against another. These combinations are called currency pairs, and learning how they work is the first step toward becoming a confident trader.

Let’s break it down in a simple way.

A currency pair shows the value of one currency compared to another. It’s always written as AAA/BBB — for example:

The first currency is called the base currency.

The second currency is called the quote currency.

What does it mean?

If EUR/USD = 1.10, it means 1 Euro = 1.10 US Dollars.

Currency pairs are grouped into three main categories:

These are the most traded pairs in the world and always include the US Dollar (USD).

Examples:

Why they’re good for beginners:

📌 Start here if you're new.

These pairs don’t include the US Dollar, but still involve strong global currencies.

Examples:

Things to know:

These pair a major currency with one from an emerging or smaller economy.

Examples:

What to expect:

📌 Not ideal for beginners — trade these only when you have more experience.

Here’s a simple rule to follow:

✔ Stick with major pairs when you're just starting out

✔ Avoid exotic pairs until you have a proven strategy

✔ Practice on a demo account to see how different pairs behave

Currency pairs move because of:

Example:

If the US economy is strong and the Euro is weak, EUR/USD may go down — because the Dollar is gaining strength.

Understanding currency pairs is like learning the language of the Forex market. Once you know how pairs work and which ones to start with, you'll trade more confidently and avoid common beginner mistakes.

🔑 Start with major pairs, learn how they move, and build your skills from there.