Below is a glossary of terms that are used in the online trading industry. Select the first letter of the word you are seeking from the list above to jump to the appropriate section of the glossary.
Major Currency Pairs (Majors)
What are major currency pairs?
Foreign currencies are always traded in pairs – the value of one currency compared to a counterpart. Major currency pairs match up the U.S. dollar with each of the other six major currencies – the euro, Japanese yen, British pound, Swiss franc, Canadian dollar, Australian dollar. And New Zealand dollar. The following seven currency pairs are the most commonly traded, and the most active on global forex markets:
Of these pairs, the EUR/USD is by far the most commonly traded pair, reaching a full one-third of the global forex market.
How does one use major currency pairs?
Traders follow the various factors that affect currency prices, including economic announcements, geopolitical events, and even global weather, in order to determine which currencies they wish to buy or sell at any given time. The major currency pairs tend to be the most volatile, and therefore the most commonly traded upon. The Fortrade website offers all of the major pairs from which traders can choose.