What Are Currency Pairs?
Major Currency Pairs, Forex currency pairs or binary currency pairs are usually referring to the financial market for which the buying and selling of foreign currency take place. The forex market is traded in currency pairs, for example, the Great British Pound V’s The U.S. Dollar.
They must be in pairs in order to see one currency increase or decrease against the other.
Breaking down ‘Currency Pairs’
The currency pairs are shown in their abbreviated form, as above, GBP/USD. It is the first currency in the pair that is the whole singular denomination of that currency i.e. £1 (one Great British Pound). The second currency is the amount available against the singular first currency; it is this price that is displayed and constantly fluctuating against the solid first currency.
If the currency pair was displayed, EUR/GBP, then it would be the British pounds value that was constantly fluctuating against the static 1 Euro. There are many different currency pairs that often fall into one of these 3 categories; major, minor and exotic.
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Major Currency Pairs
The major currency pairs are the ones most traded 7, in particular, being traded the most:
AUD/USD (Australian Dollar V’s U.S. Dollar), EUR/USD (Euro V’s U.S. Dollar), GBP/USD (Great British Pound V’s U.S. Dollar), USD/CAD (U.S. Dollar V’s Canadian Dollar), USD/CHF (U.S. Dollar V’s Swiss Franc) and USD/JPY (U.S. Dollar V’s Japanese Yen).
There are many different things that effect the fluctuations of these currency pairs and the forex market is the most volatile of all the financial markets. There is over 3 billion traded on the forex market every day and it should be dealt with caution. It is recommended you seek professional help before embarking on the forex market.