Definition
Major Currency PairsMajor currency pairs are the most heavily traded pairs, each combining the US dollar with another leading currency such as the euro, yen or pound.
Example
EUR/USD, USD/JPY, GBP/USD, USD/CHF, AUD/USD, USD/CAD and NZD/USD are generally considered the seven majors.
In detail
The US dollar is involved in roughly 88% of all foreign exchange transactions, according to the BIS 2022 Triennial Survey. Pairs that combine the dollar with another major economy's currency therefore attract the most trading activity. They are usually listed as:
| Pair | Nickname | Second currency |
|---|---|---|
| EUR/USD | "Fiber" | Euro |
| USD/JPY | "The yen" or "Ninja" | Japanese yen |
| GBP/USD | "Cable" | British pound |
| USD/CHF | "Swissie" | Swiss franc |
| AUD/USD | "Aussie" | Australian dollar |
| USD/CAD | "Loonie" | Canadian dollar |
| NZD/USD | "Kiwi" | New Zealand dollar |
EUR/USD alone is the single most traded pair in the world.
Why it matters
High trading volume brings practical benefits:
- Tighter spreads. Competition among liquidity providers keeps the spread narrow, especially during the London and New York sessions.
- Deeper liquidity. Larger orders can usually be filled with less slippage.
- Abundant information. Economic data from the US, euro area, Japan and the UK is widely reported, making fundamental analysis easier to follow.
For these reasons many beginners start with the majors. That does not make them low risk. Majors can move sharply around central bank decisions and key data releases, and leverage magnifies any move.
Pip values to remember
For a US-dollar account, pairs where USD is the quote currency (EUR/USD, GBP/USD, AUD/USD, NZD/USD) have a fixed pip value of $10 per standard lot. Pairs where USD is the base (USD/JPY, USD/CHF, USD/CAD) have pip values that vary with the exchange rate. Use the Pip Calculator to check them.
Example
Assume (illustratively) you buy 0.5 standard lots of NZD/USD and price rises 40 pips. Profit = 40 × $10 × 0.5 = $200, before costs.
Last updated
Related terms
- Currency PairA currency pair is the quotation of one currency against another, such as EUR/USD, showing how much of the second currency buys one unit of the first.
- Cross Currency PairA cross currency pair, or cross, is a pair that does not include the US dollar, such as EUR/GBP, GBP/JPY or AUD/NZD.
- Exotic Currency PairAn exotic currency pair combines a major currency with the currency of a smaller or emerging economy, such as USD/TRY, USD/MXN or EUR/ZAR.
- LiquidityLiquidity is how easily a currency pair can be traded in size without moving its price much. High liquidity usually means tighter spreads and smoother fills.
- SpreadThe spread is the difference between the ask (buy) price and the bid (sell) price of a currency pair. It is a built-in cost paid on every trade.