Major, Minor, and Exotic Currency Pairs Explained
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October 30, 2025
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Introduction
Foreign exchange trading is the world’s biggest financial market and for good reason. However, before you can even think about chart analysis or creating a trading strategy, it’s important that you understand one of the most fundamental concepts behind forex: currency pairs.
In foreign exchange trading (forex), it is the act of simultaneously buying one currency while selling another. These major, minor and exotic pairs have differences in liquidity as well as unique characteristics and trading opportunities.
At NXT Institutions, a Malappuram based best forex trading institute we guide our learners to analyze all these types of markets and how the market can be utilized efficiently in live tradin
What Are Currency Pairs?
A currency is worth something in other currency term. For instance, in EUR/USD, the euro is the base currency and USD is the quote currency.
If EUR/USD = 1.10, that means 1 Euro = 1.10 U.S. dollars.
Traders are able to profit by predicting if the base currency will be stronger or weaker against the quote currency.
Major Currency Pairs
They are considered as the best ones to trade because of its liquidity, volume and low spreads among major pairs. They will always feature the USD (United States Dollar), the world’s leading reserve currency.
Common Major Pairs:
- EUR/USD – Euro vs. U.S. Dollar
- GBP/USD – British Pound vs. U.S. Dollar
- USD/JPY – U.S. Dollar vs. Japanese Yen
- USD/CHF – U.S. Dollar vs. Swiss Franc
- AUD/USD – Australian Dollar vs. U.S. Dollar
- USD/CAD – U.S. Dollar vs. Canadian Dollar
- NZD/USD – New Zealand Dollar vs. U.S. Dollar
Characteristics:
- High Liquidity ( easy to buy and sell)
- Lower spreads (smaller trading costs)
- Stable price movements
- Suitable for beginners
At NXT Institutions, top trading institution in Malappuram, students will learn how to trade major pairs in profitable way through the use of technoth Fundamental analysis.
Minor Currency Pairs
Minor currencies (also known as cross currency pairs) are pairs of the most commonly traded global currencies that excluding the U.S. dollar.
Examples:
- EUR/GBP – Euro vs. British Pound
- EUR/JPY – Euro vs. Japanese Yen
- GBP/JPY – British Pound vs. Japanese Yen
- AUD/JPY – Australian Dollar vs. Japanese Yen
- CHF/JPY – Swiss Franc vs. Japanese Yen
Characteristics:
- Moderate liquidity
- Slightly higher spreads than majors
- Influenced by regional economic factors as is often the case
- Provide diversification opportunities
Exotic pairs are perfect for traders who would like to explore currency movement that is not dominated by the U.S. dollar.
Exotic Currency Pairs
Exotic pairs include one major currency and one from an emerging or smaller economy.
Examples:
- USD/INR – U.S. Dollar vs. Indian Rupee
- USD/SGD – U.S. Dollar vs. Singapore Dollar
- EUR/TRY – Euro vs. Turkish Lira
- USD/ZAR – U.S. Dollar vs. South African Rand
- USD/THB – U.S. Dollar vs. Thai Baht
Characteristics:
- Low liquidity (less trading volume)
- Higher spreads and volatility
- Greater risk and reward potential
- Impacted heavily by political and economic events
Exotic pairs are ideal for experienced traders who can manage higher volatility and understand global market movements.
Comparison Table
Category | Includes USD | Liquidity | Volatility | Best For |
Major Pairs | Yes | Very High | Low to Medium | Beginners |
Minor Pairs | No | Moderate | Medium | Intermediate Traders |
Exotic Pairs | Yes (usually) | Low | High | Advanced Traders |
Why Learning Forex Pairs Matters
It helps traders to understand the behavior of these keeps:
- Pick pairs that suit their trading role
- Manage risk effectively
- Adapt to market conditions
- Diversify trading portfolios
This is why at NXT Institutions the best forex trading institute in Malappuram, we teach students about how to choose which pair they should be focusing on based not only on volatility but also liquidity and market time.
Learn Forex Trading with NXT Institutions
Here at NXT Institutions, we provide forex training in a hands-on capacity for all levels – from new trader to institutional level. Our courses include:
- Hands-on live chart analyses and actual exercises
- Real-time trading simulations
- How to trade the majors, minors, and exotics
- Risk and money management techniques
If you want to learn forex trading with powerful tutorials and professional guidance, NXT Institutions is your best bet the best trading academy in Malappuram and there’s a good reason for that too!
Conclusion
When traders are informed about what they are trading, such as major currency pairs, minor currencies (crosses), and even exotic currency pairs, then they have the ability to make better judgments when trading strategies. Whether you are drawn to the stability of major pairs or prefer exotic ones, understanding how they move is integral if you want success.
Enrol with NXT Institutions, the top forex trading institute in Malappuram and start progressing as a pro trader.
