In the Forex Market, the following are the 6 major pairs.
- EUR/USD (Euro / US Dollar)
- GBP/USD (Sterling / US Dollar)
- USD/JPY (US Dollar / Japanese Yen)
- USD/CHF (US Dollar / Swiss Frank)
- USD/CAD (US Dollar / Canadian Dollar)
- AUD/USD (Australian Dollar / US Dollar)
The majors have large volume of trading, more liquid and tighter spread.
There are also other currency pairs which are called the exotics like
- EUR/GBP
- GBP/JPY
- NZD/USD
The exotics have low volume, less liquid and much higher spreads.
In a nutshell, a spread is the amount of commission the broker takes from you in every trade. It is also the difference in price between the bid and the ask price. The higher the spread, the more commission the brokers earns, and the more pips you need to earn! We will talk on spread later on.
TIP
If you are a beginner or just starting out, you should focus on the major pairs. EUR/USD is the best currency to start with!
