Forex Trading is currency trading, where buying, selling, and exchange of currency pairs take place to make profitable returns. The PPt will cover about what is currency pairs and their types.

1. The Ultimate Guide to Currency
Pairs in Forex Trading

2. Introduction
• Forex Trading is currency trading, where buying, selling, and exchange of currency
pairs take place to make profitable returns.
• Therefore, currency pairs are crucial to forex trading and every forex trader should
be familiar with currency pairs, their types, working, and how they are traded in
the forex market for earning profits.

4. What are currency pairs and how do
they work?
• A currency pair is a combination of two foreign currencies.
Example: US dollar and UK’s Euro (USD/EUR). So, here’s how a
currency pair works in forex trade. A currency pair consists of
two currencies and their quotations.
• Among the two currencies, the value of one currency is quoted
against the other currency. The first currency that is listed is
called the base currency and the second currency is known as
the quote currency.

5. • The values of both these currencies (base currency and quote
currency) are compared to find out the amount of quote
currency needed to buy a unit of base currency.
• Learn forex trading from a reputed and experienced institute
to get detailed insights on currency pairs and other important
forex concepts.

6. • Every currency comes with a code called an ISO currency code.
The ISO currency code of the US dollar is USD. Similarly, every
currency has its own code. When a currency pair is traded, it will
appear in this format - USD/EUR.
• There are different types of currency pairs. Some are popular,
widely traded and come with high liquidity, while some currency
pairs are least traded and come with low liquidity.

7. Types of Currency Pairs
There are 3 prominent types of currency pairs.
1. Major currency pairs
2. Minor currency pairs
3. Exotic currency pairs

8. • Major currency pairs are currency pairs that are traded against
the US dollar and are traded in high volumes in forex trading.
When currency pairs are traded in high volumes, they have small
spreads and high liquidity, which are advantageous for the
traders.
• This is why most beginner traders and even advanced traders
prefer to trade major currency pairs. Example for major currency
pairs: EUR/USD, USD/CHF, USD/CAD, GBP/USD, USD/JPY, etc.

9. • Minor currency pairs are currency pairs that do not include the
US dollar. These are also called the crosses. These are traded in
lesser volume compared to the major currency pairs. They also
have wider spreads and quite low liquidity.
• Exotic currency pairs are rare currency pairs that are not
popularly traded in the forex market. These currency pairs are
slowly emerging in the market and come with wider spreads.
The price movements of exotic currency pairs are difficult to
predict.

10. • Traders rarely choose exotic pairs to trade as they come with
poor liquidity and high risk factors. To learn about currency pairs
in a much more detailed manner, students or traders can opt for
a forex trading course.
In forex trading, currency pairs are continuously bought, sold,
exchanged and speculated in order to execute trades and make
profits. While purchasing a currency pair, a trader will buy the base
currency and sell the quote currency.

11. Similarly, when a trader sells a currency pair, the base currency will
be sold and quote currency will be bought. In short, one currency is
always sold to purchase another currency in forex trading.
Factors such as the GDP, economic scenarios in a country, interest
rates, and federal reserve actions may influence currency pairs. Join
the best forex trading class now to learn more about every aspect of
trading in detail. Investment in a course comes with lifelong
benefits, as the trader will get a strong idea about all the forex
concepts in a clear manner to engage in trading.

12. To Redefine Your Life, Join Us And Learn Forex
Trading with The Fido Academy
https://thefidoacademy.com/
+91-8248464994
info@thefidoacademy.com

13. Thank You