A currency pair consists of two currencies: the base currency (first) and the quote currency (second). It shows how much of the quote currency is needed to buy one unit of the base currency.
Structure
EUR/USD = 1.0850
- EUR = Base currency (what you’re buying/selling)
- USD = Quote currency (what you pay with)
- 1 EUR = 1.0850 USD
Major Pairs (Highest Volume)
| Pair | Nickname | Spread |
|---|---|---|
| EUR/USD | Fiber | 0.6-1.0 pip |
| USD/JPY | Gopher | 0.7-1.2 pip |
| GBP/USD | Cable | 0.8-1.5 pip |
| USD/CHF | Swissy | 0.8-1.2 pip |
| AUD/USD | Aussie | 0.8-1.2 pip |
| USD/CAD | Loonie | 1.0-1.5 pip |
| NZD/USD | Kiwi | 1.0-1.5 pip |
Categories
- Majors — Involve USD, most liquid
- Minors (Crosses) — No USD (EUR/GBP, AUD/JPY)
- Exotics — Major + emerging market (USD/TRY, EUR/ZAR)