Buying And Selling Currency Pairs

Buying And Selling Currency Pairs

Forex trading is a currency BUY and an ongoing process of SELL. This process is done through a broker / dealer and the trade is to be done against another currency. Example, Euro and U.S. Dollar is trading in currency pairs (EUR/USD) or, trading in British Pound and Japanese Yen (GBP/JPY).

When you trade in the forex market, you buy or sell in currency pairs.

Suppose every currency pair is in a war. Of the two currencies, two want one currency to hold its own against the other currency. Which we have tried to show through the image above. Changes in the EXCHANGE RATE between these two currency pairs will depend on which currency pair is stronger at this time.

Major currency pair

The currency pairs listed in the chart below are called Major Currency Pairs

One of these pairs is in the U.S. Dollar (USD), which is the largest trading volume in the Forex market. In a word, these currency pairs are the most traded by traders.

Currency Pair Countries FX Geek Speak
EUR/USD Eurozone / United States “euro dollar”
USD/JPY United States / Japan “dollar yen”
GBP/USD United Kingdom / United States “pound dollar”
USD/CHF United States/ Switzerland “dollar swissy”
USD/CAD United States / Canada “dollar loonie”
AUD/USD Australia / United States “aussie dollar”
NZD/USD New Zealand / United States “kiwi dollar”

Major Cross-Currency Pairs or Minor Currency Pairs

Currency pairs that include the U.S. Dollar (USD) is not called cross-currency pair, it is called “crosses”.

Major Cross Payers are also more commonly known as “minors”. Most cross-currency pairing starts with three non-USD currencies: EUR, JPY, and GBP.

Euro Crosses

Currency Pair Countries FX Geek Speak
EUR/CHF Eurozone / Switzerland “euro swissy”
EUR/GBP Eurozone / United Kingdom “euro pound”
EUR/CAD Eurozone / Canada “euro loonie”
EUR/AUD Eurozone / Australia “euro aussie”
EUR/NZD Eurozone / New Zealand “euro kiwi”
EUR/SEK Eurozone / Sweden “euro stockie”
EUR/NOK Eurozone / Norway “euro nockie”

Yen Crosses

Currency Pair Countries FX Geek Speak
EUR/JPY Eurozone / Japan “euro yen” or “yuppy”
GBP/JPY United Kingdom / Japan “pound yen” or “guppy”
CHF/JPY Switzerland / Japan “swissy yen”
CAD/JPY Canada / Japan “loonie yen”
AUD/JPY Australia / Japan “aussie yen”
NZD/JPY New Zealand / Japan “kiwi yen”

Pound Crosses

Pair Countries FX Geek Speak
GBP/CHF United Kingdom / Switzerland “pound swissy”
GBP/AUD United Kingdom / Australia “pound aussie”
GBP/CAD United Kingdom / Canada “pound loonie”
GBP/NZD United Kingdom / New Zealand “pound kiwi”

Other Crosses

Pair Countries FX Geek Speak
AUD/CHF Australia / Switzerland “aussie swissy”
AUD/CAD Australia / Canada “aussie loonie”
AUD/NZD Australia / New Zealand “aussie kiwi”
CAD/CHF Canada / Switzerland “loonie swissy”
NZD/CHF New Zealand / Switzerland “kiwi swissy”
NZD/CAD New Zealand / Canada “kiwi loonie”


Exotic Currency Pairs

This type of currency pair is made up of one major currency and the other with an emerging economy currency. For example, Brazil, Mexico, Hungary, Africa etc.

In the chart below, we have tried to give examples of some exotic currency pairs. One thing to note, these currency pairs are one-of-a-kind at Broker Veda and are not so widely traded as “majors” or “crosses” currency pairs. So, the spread of this kind of currency pair transactions is very high.

Currency Pair Countries FX Geek Speak
USD/BRL United States / Brazil “dollar real”
USD/HKD United States / Hong Kong
USD/SAR United States / Saudi Arabia “dollar riyal”
USD/SGD United States / Singapore
USD/ZAR United States / South Africa “dollar rand”
USD/THB United States / Thailand “dollar baht”
USD/MXN United States / Mexico “dollar mex”
USD/DKK United States / Denmark “dollar krone”
USD/SEK United States / Sweden “dollar stockie”
USD/NOK United States / Norway  “dollar nockie”
USD/RUB United States / Russia “dollar ruble” or “Barney”
USD/PLN United States / Poland “dollar zloty”

It’s not unusual to see spreads that are two or three times bigger than that of EUR/USD or USD/JPY. So if you want to trade exotics currency pairs, remember to factor this in your decision.

G10 Currencies

The currency of the G10 is a total of 1 that is used to make the most transactions in the world. Also, because of the high volume of transactions through these four currencies, they are also called the most liquid currencies in Forex trading.

Country Currency Name Currency Code
United States dollar USD
European Union euro EUR
United Kingdom pound GBP
Japan yen JPY
Australia dollar AUD
New Zealand dollar NZD
Canada dollar CAD
Switzerland franc CHF
Norway krone NOK
Sweden krona SEK
Denmark krone DKK



BRIICS  is the acronym coined for an association of five major emerging national economies: Brazil, Russia, India, Indonesia, China and South Africa.

Originally the first four were grouped as “BRIC” (or “the BRICs”). BRICs was a term coined by Goldman Sachs to name today’s new high-growth emerging economies.

BRIICS is the term used by the OECD, the rich-country think tank adds Indonesia and South Africa.

Country Currency Name Currency Code
Brazil real BRL
Russia ruble RUB
India rupee INR
Indonesia rupiah IDR
China yuan CNY
South Africa rand ZAR


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