The foreign exchange market, also known as the forex (FX) market, is the world's largest financial market. It is the most traded market in the world, with over $ 5 trillion in cash flows traded globally every day.
There are many currency pairs that traders can choose from when trading in the forex market. Examples of major currency pairs are EURUSD, GBPUSD including the US dollar (USD). Major pairs, also known as Major Parity, are the most traded currencies in the currency market. Major Parities make up 75% of all forex transactions.
Minor Pairs are currency pairs in which the US dollar is not traded and are normally less liquid. Examples include the euro and the Swiss franc (EUR / CHF), the Canadian dollar and the Japanese yen (CAD / JPY) or the pound and the Australian dollar (GBP / AUD).
Exotic currency pairs are the least traded in the forex market. With Exotic Pairs, volatility is high and prices can fluctuate greatly and spreads can be high due to low trading volume.