Majors, crosses & exotics
The majors
The seven major pairs all include the US dollar: EUR/USD, USD/JPY, GBP/USD, USD/CHF, AUD/USD, USD/CAD and NZD/USD. They are the most traded pairs in the world, so they usually have the lowest trading costs and the smoothest charts. Most beginners start here.
Crosses (minors)
A cross pairs two major currencies without the US dollar, like EUR/GBP, EUR/JPY or GBP/JPY. Crosses can move more than the majors (GBP/JPY is famous for big swings) and cost a bit more to trade.
Exotics
An exotic pairs a major currency with the currency of a smaller or emerging economy, like USD/TRY (Turkish lira), USD/ZAR (South African rand) or USD/MXN (Mexican peso). Fewer people trade them, so costs are higher and moves can be sudden.
Remember: Major: has USD and is one of the seven. Cross: two majors, no USD. Exotic: an emerging-market currency.
Nicknames you will hear
Traders give the big pairs nicknames: EUR/USD is "Fiber", GBP/USD is "Cable" (prices once crossed the Atlantic by an undersea cable), USD/CHF is "Swissie", AUD/USD is "Aussie", NZD/USD is "Kiwi" and USD/CAD is "Loonie" (after the loon bird on the Canadian dollar coin).
Test yourself
What do all seven major pairs have in common?
They all include the US dollarEvery major is a currency against USD.
Why do most beginners start with the majors?
They are the most traded, with the lowest costsHeavy trading keeps costs low and price action smoother.
Which pair is nicknamed "Cable"?
GBP/USDFrom the transatlantic cable that once sent pound-dollar prices between London and New York.
Compared with majors, exotic pairs usually have…
Higher costs and more sudden movesFewer traders means a wider gap between buy and sell prices.
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Candlr is educational. Nothing here is financial advice, and trading involves a high risk of loss.