How many currency pairs are there in Forex? 29 Forex currency pairs that traders need to know

Forex trading simply involves buying one currency and selling another simultaneously, which means you always work with currency pairs such as EUR/USD or USD/JPY. Currently, there are up to 180 accepted forex pairs, but not all are easily tradable. Therefore, currency pairs are categorized into three main types based on the currency characteristics and trading volume.

The 8 Major Currencies You Should Know

First, let’s understand the main currencies that traders reference. There are 8 major currencies: US Dollar (USD), Euro (EUR), Japanese Yen (JPY), British Pound (GBP), Swiss Franc (CHF), Australian Dollar (AUD), New Zealand Dollar (NZD), and Canadian Dollar (CAD). These currencies form the basis for classifying forex pairs.

The 7 Most Liquid Major Forex Pairs

Major forex pairs (Major Pairs) combine the US dollar with other key currencies. There are 7 pairs with enormous trading volumes, making them popular choices for beginner traders.

Each major forex pair exhibits continuous and clear price movements. They also feature the narrowest spreads (Trading Spread), resulting in lower trading costs.

The Minor Forex Pairs (Minor Pairs) - Good liquidity but some issues

Minor forex pairs (Cross Pairs) involve pairing different major currencies without necessarily including the US dollar. Although their trading volume is lower than majors, they still offer sufficient liquidity and are suitable for experienced traders.

Euro Group (EUR): EUR/CHF, EUR/GBP, EUR/CAD, EUR/AUD, EUR/NZD, EUR/SEK, EUR/NOK

Japanese Yen Group (JPY): EUR/JPY, GBP/JPY, CHF/JPY, CAD/JPY, AUD/JPY, NZD/JPY

Pound Group (GBP): GBP/CHF, GBP/AUD, GBP/CAD, GBP/NZD

Other minor forex pairs include: AUD/CHF, AUD/CAD, AUD/NZD, CAD/CHF, NZD/CHF, NZD/CAD

Emerging Forex Pairs - For traders who seek challenges

Emerging forex pairs (Exotic Pairs) are formed by pairing the US dollar with currencies from rapidly growing economies such as Brazil, Mexico, Turkey, Singapore, and Thailand. These pairs are characterized by higher spreads and greater volatility.

Other Interesting Forex Currencies

Beyond the three main categories, there are special forex currencies of significance.

The Scandies refer to currencies of Scandinavian countries: Denmark, Norway, and Sweden. These are linked to the European economy across northern and central regions.

CEE (Central and Eastern Europe) includes currencies from Central and Eastern European countries such as Albania, Bulgaria, Croatia, Czech Republic, and others.

BRIICS is a group of high-potential emerging economies: Brazil, Russia, Indonesia, China, and South Africa. Currencies from these countries tend to be highly volatile but also offer high profit opportunities.

Understanding this classification of 29 key forex pairs will help traders select pairs that align with their strategies and experience levels effectively.