{"id":285559,"date":"2025-06-10T10:19:18","date_gmt":"2025-06-10T10:19:18","guid":{"rendered":"https:\/\/peraltafinancing.com\/uncategorized\/what-are-the-28-major-forex-pairs-for-trading\/"},"modified":"2025-06-10T10:19:18","modified_gmt":"2025-06-10T10:19:18","slug":"what-are-the-28-major-forex-pairs-for-trading","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=285559","title":{"rendered":"What are the 28 Major Forex Pairs for Trading?"},"content":{"rendered":"


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The 28 Major Forex Pairs – What you need to know about Forex Pairs <\/h2>\n

Nov 13, 2024<\/span><\/p>\n

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When you dive into the world of trading, specifically forex trading, the first thing you will probably hear about is forex pairs. And you’ll probably wonder if there’s such thing as the “best forex pair to trade<\/em>“.<\/p>\n

Not sure about you, but that’s all I kept thinking off on the first day of my trading research back when I first got started. And it drove me crazy because there was so many pairs to choose from.\u00a0<\/p>\n

Don’t worry though, that’s what this blog is for. We’ll go over:\u00a0<\/p>\n

1. What is a forex pair\u00a0<\/strong>
2. What are the major forex pairs<\/strong>\u00a0
3. Which Forex Pair is the best to trade<\/strong>.\u00a0
4. How to trade<\/strong>\u00a0them.<\/p>\n\n

1. What is a Forex Pair\u00a0<\/h2>\n

It’s exactly what it sounds like!\u00a0<\/p>\n

A ‘pair’ is made up of two currencies. Let’s take the USD currency and the JPY currency, when we put them together, they are what’s known as a pair, the USD\/JPY (One of the most popular pairs). The one thing to understand about currencies is that it\u2019s very difficult to assess their value in isolation. However, by comparing one currency to another, we can judge how strong or weak it is. For instance, when we have a pair like USD\/JPY, this Forex pair tells us how strong the USD is in comparison to the JPY.<\/p>\n

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It\u2019s like getting your report card in school\u2014you don\u2019t really know how poorly you performed until you compare your result with someone like Tom (the kid who reminds the teacher there was homework due)<\/em>.<\/p>\n

Anyway, your next question might be: could this be called JPY\/USD instead of USD\/JPY? The short answer is no. For the more detailed explanation, check out this page<\/a> where it\u2019s broken down further.<\/p>\n

Don\u2019t worry, though\u2014I\u2019ll give you a list of the major Forex pairs later, so you can avoid running into this conundrum.<\/p>\n

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2. What are the\u00a0<\/span>major forex pairs?<\/strong><\/h2>\n


<\/strong>a. The Big Boys.<\/h3>\n

Now that we know it\u2019s never a good idea to compare grades with Tom, but sadly, that’s what forex essentially is. So let\u2019s first look at who the big boys are in the Forex world\u2014 what we call the Major Pairs<\/strong>.<\/p>\n

And here they are:<\/p>\n

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As you can see, we have EUR\/USD, USD\/JPY, GBP\/USD, USD\/CHF, AUD\/USD, USD\/CAD, and NZD\/USD. You\u2019ll quickly notice that they all have one currency in common: the USD. The reason they\u2019re regarded as the Major Pairs is that they are the most liquid<\/strong> pairs in the market, which means a couple of things:<\/p>\n

They have higher<\/strong> stability<\/strong>.
Their spreads<\/strong> are generally much lower<\/strong>.<\/p>\n

The main reason for this is the role of the USD. Factors such as the USD being the world\u2019s reserve currency, the U.S. Federal Reserve\u2019s influence as one of the most impactful central banks, and the United States\u2019 massive economic power all set USD pairs apart from others due to their outsized role in the global economy and financial markets.<\/p>\n

b. The Wild West<\/h3>\n

Calling them the “Wild West” might be a bit of an exaggeration, as there are still plenty of traders who trade these pairs. We call them the Cross Currency Pairs<\/strong> as well as the Exotic Crosses<\/strong>.<\/p>\n

The Cross Currency Pairs<\/strong> include:<\/p>\n

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You\u2019ll notice that these pairs do not include the USD. Historically, if you wanted to exchange one non-USD currency for another, you\u2019d have to convert it to USD first and then to the desired currency. Cross pairs allow for direct exchange without the USD as an intermediary.<\/p>\n

When people refer to the “28 Major Forex Pairs”, they are typically referring to the Majors as well as the Crosses pairs you see from above.\u00a0<\/p>\n

Then, you have the Exotic Crosses<\/strong>, which include:<\/p>\n

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These pairs typically involve currencies from countries with emerging or smaller economies. They generally have lower liquidity in the global Forex market.<\/p>\n\n

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3. Which Forex Pair is the\u00a0<\/span>best to trade<\/strong>.\u00a0<\/span><\/h2>\n

Now, that’s the age-old question, isn\u2019t it? Which forex pair will be the one to put me in retirement for good?<\/em><\/p>\n

To answer this question, we first need to understand liquidity.<\/p>\n

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In the trading world\u2014whether in stocks, crypto, or forex\u2014liquidity refers to how easily an asset can be bought or sold at a given price. A liquid market generally comes with a few benefits:<\/p>\n

a. Tight Spreads<\/strong>
If you’re a scalper, this is crucial because a 1-2 pip difference in the spread can easily impact your risk-to-reward ratio by 25-50%.<\/p>\n

b. Low Volatility<\/strong>
Lower volatility means you\u2019re less likely to encounter sudden spikes or large gaps in the market, which can sometimes be risky for your trading.<\/p>\n

c. Stability<\/strong>
Strategies that rely on technical analysis (like chart patterns) work better in liquid markets, as more participants contribute to clearer patterns and trends.<\/p>\n

And guess which category of forex pairs are the most liquid? <\/p>\n

The Forex Major Pairs.<\/p>\n

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4.\u00a0How to trade<\/strong>\u00a0them.\u00a0<\/span><\/h2>\n

You can give an F1 driver a Toyota Camry, and he’ll still beat an ordinary driver in an F1 car in a race.<\/p>\n

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My point is this: it’s less about which pair is likely to bring in the most return and more about how well you understand the market and deploy a strategy that can work with any pair\u2014even the wild ones.<\/p>\n

So, if you\u2019re one of our Urban Forex students, you know it\u2019s all about reading the price action between buyers and sellers. If you\u2019re not yet a student, just pick up our free price action course<\/a>. That\u2019s pretty much the first step to becoming an excellent \u2018F1 trader.\u2019<\/p>\n

Remember, it\u2019s not about which currency pair you\u2019re trading; it\u2019s about how you\u2019re trading them<\/em>.<\/p>\n

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Conclusion\u00a0<\/strong><\/h2>\n

Now, obviously, with what\u2019s been said, you don\u2019t want to trade a currency pair that\u2019s not on the list above. Any one of the Major, Cross, or Exotic pairs are generally fine. All I\u2019m trying to say is, don\u2019t limit yourself to just one pair. With a robust strategy, you can easily approach all 28 forex pairs with ease.<\/p>\n

So, without sounding like a hypocrite, what\u2019s your favorite forex pair?<\/p>\n<\/p><\/div>\n