What a currency pair is
In forex you always trade one currency against another. In EUR/USD, the euro is the base currency and the US dollar is the quote currency. The price shows how many units of the quote currency buy one unit of the base. If EUR/USD rises, the euro is gaining against the dollar.
A pip is the standard unit of price change in a pair. A spread is the gap between the buy (ask) and sell (bid) price, and it is a cost you pay on every trade. Both are covered in Trading basics and the Trading glossary.
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Majors, minors and exotics
Pairs are usually sorted into three groups. The Majors, minors, exotics page explains each group in depth.
- Majors pair the US dollar with another heavily traded currency, for example EUR/USD, GBP/USD and USD/JPY. They are usually the most liquid pairs and often have the tightest spreads.
- Minors, or crosses, are pairs of major currencies without the dollar, such as EUR/GBP and GBP/JPY.
- Exotics pair a major currency with an emerging-market or smaller currency, such as USD/TRY or USD/ZAR. Spreads and swaps are often wider, and prices can jump sharply on local news.
What drives each currency
| Currency | Main drivers | Pip size in its pairs | Usually most active | Example pair pages |
|---|---|---|---|---|
| USD | Federal Reserve rates, US jobs and inflation data | Standard | New York, London overlap | EUR/USD, USD/CAD |
| EUR | European Central Bank, eurozone data | Standard | London | EUR/USD, EUR/CHF |
| GBP | Bank of England, UK inflation | Standard | London | GBP/USD, EUR/GBP |
| JPY | Bank of Japan, safe-haven demand | Larger (yen-style quote) | Tokyo, New York | USD/JPY, EUR/JPY |
| CHF | Swiss National Bank, safe-haven demand | Standard | London | USD/CHF, CHF/JPY |
| AUD | Reserve Bank of Australia, metals, China data | Standard | Sydney, Tokyo | AUD/USD, AUD/JPY |
| NZD | Reserve Bank of New Zealand, dairy prices | Standard | Sydney, Tokyo | NZD/USD, AUD/NZD |
| CAD | Bank of Canada, oil prices | Standard | New York | USD/CAD, CAD/JPY |
| Exotics (TRY, ZAR, MXN and others) | Local inflation, politics, capital flows | Varies by quote | Their home session and London | USD/TRY, USD/MXN |
Yen pairs are quoted with fewer decimals, so a pip is a larger price step than in most other pairs. To see what a pip is worth in money for your lot size, use the Pip value calculator.
Session times shift with daylight saving. The Session time converter shows them in Pakistan time.
How to use this section
If you are new: start with Majors, minors, exotics, then read EUR/USD, because most learning material uses it as the example. Practise on a demo account and read Risk management before using real money.
If you trade already: each pair page covers its drivers, typical behaviour by session, and how pip value and margin work for that pair. Pair correlations shows which pairs tend to move together, so you do not double your exposure without noticing. Swap fees and the Margin calculator help you plan the cost of holding positions overnight.
Risk and local rules
Forex and CFDs are usually traded with leverage, which means a small price move can cause a large loss, and losses can build quickly. No pair is safe or predictable.
Pakistani readers should also know that per the SBP, remitting foreign exchange to overseas forex/margin/CFD platforms is not allowed through any payment channel (FERA s.5(1)), and that per the SECP, offshore platforms have no Pakistani licence or oversight and offer no legal protection or recourse. Read Regulation and Safety before you decide anything.
Frequent questions
What are the best forex pairs to trade?
There is no single best pair. Majors are usually more liquid and cheaper to trade, while exotics are often more expensive and jumpier. What suits you depends on your hours, costs and risk limits.
Where can I see the full forex currency pairs list?
The full list of pair pages in this section appears below this text, grouped by type.
Why do JPY pairs have a different pip size?
Yen pairs are quoted with fewer decimal places, so the pip sits at a larger price step. The Pip value calculator handles this for you.
Can I trade the Pakistani rupee as a forex pair?
For official PKR rates, see Exchange rates and SBP exchange rates. These pages show reference rates and do not offer trading.
Do pairs move together?
Many do. For example, pairs that share the US dollar often react to the same news. See Pair correlations.
