Welcome! Dear Traders,you are reading my forex trading experiences. Forex trading is a very profitable and very risky business opportunity. If you are a beginner, calm down,have a cup of coffee, and convince yourself that you need to study hard to win in forex trading. Obviously, the task is not easy as the statistics claim that only 5% traders win in forex trading. If you are determined, serious,and hard working, you can surely be included in the group of winners.

TRADING CURRENCIES IN PAIRS, MAJOR AND EXOTIC CURRENCY PAIRS

In forex currencies are traded in pairs. The first currency in a pair is called the base currency, and the second currency in a pair is called the counter currency. The price chart of a currency pair represents the price of the base currency in terms of counter currency. A popular major currency pair is EUR/USD, where EUR is a base currency, and the USD is a counter currency, and the price chart of the EUR/USD illustrates the price of euro in terms of USD e.g. 1 EUR = 1.23456.

Source: clipartbest.com
The price of the EUR/USD go up, if the EUR is stronger than the USD, and the price chart of the EUR/USD go down, if the USD is stronger than the EUR. 

When we see that the EUR has better fundamental and technical condition, we place a buy order on EUR/USD pair. It means we convert our USD into EUR. On the other side,when we see that the USD has better fundamental and technical condition, we place a sell order on EUR/USD pair. It means we convert our EUR into USD.

 What are the major currency pairs ?
The simple answer of this question is that the major currency pairs are those which frequently traded in forex market. We can see USD appears in all major currency pairs in forex market. This is because United States economy is one of the 3 largest economy, USD is the reserve currency of the world, United States has the largest and most liquid financial markets in the world, United States has a super stable political system ,and USD is the medium of exchange for many cross-border. 

Other currency pairs that have no USD are called the cross-currency pairs or simply the “crosses.” The table above shows the Euro crosses. There are numerous number of crosses in forex market  available to trade.

What are the exotic currency pairs?
Exotic currency pairs are the pairs that have one major currency and one minor or infrequently traded currency. Most of the traders avoid the exotic currency pairs while some other traders know how to take the advantage of the exotic currency pairs.
 
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Now you know, what are the major and exotic currency pairs in forex market? You also know what are the crosses in forex market ? If you have any questions, suggestions or complements, you can drop a comment below.

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