Forex Pairs - Forex Currency Pairs

The Forex market is the world’s biggest financial market with a daily turnover of over 5 trillion USD. It is one of the most recommended modern-day investments, which is why new traders join this market every day.

When you trade in the Forex market, basically you sell a currency to buy a different one. However, since there are hundreds of currency pairs traded in the market every day, you may be wondering which currency pair is the best deal. After all, you wouldn’t buy a product without knowing the costs and specs, would you?

Now, if you want to know more about Forex currency pairs and which ones are available in the market right now, keep reading.

What are Forex Currency Pairs?

Trading in the FX market involves buying and selling different kinds of currencies. These currencies are paired together, so we can measure the relative value of each of them in comparison to that of another.

And that is why these are called “currency pairs.”

When you see a currency pair in this format: XXX/YYY, the one on the left side (XXX), is called the base currency or the currency you intend to buy. The one on the right side (YYY) is called the quote currency or the money you are using to buy the base currency.

For example, if you’re buying EUR/USD at 1.2249 today, it means that you’re selling your 1.2249 USD to buy 1 EUR.

Forex currency pair, base, quote and price

How does it work?

Imagine when you’re on vacation, and you see a banner that says:

The British Pound may seem ordinary for the people living in the UK. However, those who are not accustomed to using the British Pound as their main currency may try to recalculate that price in their head using their country’s currency.

That is precisely how currency pairs work. The Forex market perceives the value of one currency using that of another as a measurement. In this way, the value of every currency will be interconnected in the market.

Therefore, when you see that the price of EUR/USD goes up from EUR/USD 1.22 to EUR/USD 1.3, it means that the relative value of EUR has increased compared to USD. At the same time, the value of USD has decreased compared to EUR. Thus, you will need more USD to buy 1 EUR.

Types of Currency Pairs in Forex

These currency pairs are categorized according to their unique characteristics and risk levels:

✅ 1. Major Forex Currency Pairs

The Major Forex pairs are the most recommended currency pairs for trading. This type of currency pairs involves the 8 most highly traded currencies in the international market. These are highly recommended, especially to new traders.

👉 Learn more about Forex Major Currency Pairs

✅ 2. Minor/Cross Forex Currency Pairs

The second most recommended currency pairs to trade are the Minor/Cross Forex pairs, which could be a little bit challenging and suitable for experienced traders only.

👉 Learn more about Forex Minor Currency Pair (Crosses)

✅ 3. Exotic Forex Currency Pairs

Finally, the Exotic Forex pairs are the most complicated and volatile in the list, and should only be attempted by professional traders who seek more thrills and challenges in their daily trading activities.

The bottom line is, it all depends on you, whether you are a beginner or an experienced trader, to choose between the abovementioned pairs by taking into account your level of proficiency as well as risk tolerance.

What is Forex?

What is Forex Trading?

High Risk Warning: Trading with highly leveraged Forex products carries a high level of risk; this could be both advantageous and disadvantageous. In the process of trading, you may sustain a loss in excess of your deposited funds. As a result, it may not be suitable for all investors. Before deciding to trade in the real market, please make sure that you understand the risks fully, and seriously consider your investment objectives and your level of experience.