Majors, Minors & Exotic Currency Pairs |Ben Wright

SELF DEVELOPMENT/METHODOLOGY/PSYCHOLOGY
Majors, Minors & Exotic Currency Pairs | BEN WRIGHT

Currency Pairs

a) Popularity
A currency pair is the structure of the currencies, which are traded in the forex market.
According to the latest report of United Nations, there are 180 currencies around the world and
the illustrated currencies are the top 8 traded bills in Forex. The currency pairs are popular as
they are used for the diversification of the as multiple currencies are involved in it. It can also
work as a hedging tool to avoid the risk in the forex, which is generated due to the presence of
several transactions.

b) Groups
There are three types of currency pair groups present, which are major groups, minor groups and
exotic groups.
Major groups
Major currency pairs are those groups, which have US dollar on in its pair. They are also the
most traded currency pair in the FOREX. Some examples of major currency pairs are EUR/USD,
USD/JPY, and GBP/USD etc.
Minor Groups
Minor currency pairs are those, which do not contain the US dollar as the major currency. The
mostly traded minor currencies are UK pound, Euro and Japanese Yen. EUR/GBP, EUR/CHF
and EUR/CAD are some examples of minority groups.
Exotic Group
Exotic currency pairs are those, which have one major currency and one emerging currency.
These pairs are not traded frequently due to the presence of low liquidity in these markets. So me
popular exotic currency pairs are EUR/TRY, USD/SEK and USD/NOK.

c) Volatility
Volatility can be defined as the rapid change in the liability due to the presence of economic
conditions of the country. For example, the GBP/AUD is the highly volatile currency pair as the
economy of UK is a bit unstable after the Brexit. The least volatile currency pair is EUR/GBP as
the after effects of Brexit will take time to reach the International market.

HAPPY TRADING :)

"The best traders have no ego.You have to swallow your pride and get out of the losses" Tom Baldwin