Buying And Selling Currency Pairs in FX market

The concurrent selling and buying of currencies takes place on forex trading. The currencies are traded in pairs and dealers or brokers are used for the trading purpose.
Take an instance of the British pound sterling and the U.S. dollar (GBP/USD) or the U.S. dollar and the Swiss franc (USD/CHF).
Currency pairs are used in the selling or buying process in the forex market.

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Due to the fluctuating exchange rates, it is hard to determine the strongest currency. However, it can be determined for a given moment.

Major Currency Pairs

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The following currency pairs are classes as “Major Currency Pairs” in the forex market. They are frequently traded because of their liquid nature. It is worth noting that the most regularly traded pairs are the ones which contain USD.

Major Cross-Currency Pairs or Minor Currency Pairs

The USD is not a part of some of the currency pairs. Such pairs are classed as “Crosses” or “Cross-Currency Pairs. Minors is the term used to express the major crosses. The GBP, JPY and EUR are the most frequently traded currencies in the crosses.  

Euro Crosses

Yen Crosses

Pound Crosses

Other Crosses

Exotic Currency Pairs

In an exotic currency pair, one of the currencies is of a developing nation. The instances of developing nations could be Kenya, Russia or South Korea.

A few instances of the currency pairs are demonstrated in the following chart. Take a look at the chart and try to guess which currency is represented by the symbols. It is always a good idea to have some background information before you begin trading on Forex. One thing that should be kept in mind is that the exotic pairs are quite expensive to trade as they are not widely traded like the “crosses” or “majors”.

Exotic pairs usually come with a high cost as opposed to GBP/USD or USD/CHF. The element of cost should be considered before taking any decision.