What you'll learn
- Name the seven major pairs
- Explain why they have the lowest costs
- Know each pair's common nickname and character
The seven majors
| Pair | Nickname | What tends to drive it |
|---|---|---|
| EUR/USD | Fiber | ECB and Fed policy, eurozone growth; the most traded pair in the world |
| USD/JPY | Gopher | US yields, Bank of Japan policy, risk appetite; the yen strengthens in scares |
| GBP/USD | Cable | Bank of England, UK politics; moves more than EUR/USD |
| USD/CHF | Swissie | Safe-haven flows; often mirrors EUR/USD |
| AUD/USD | Aussie | Commodity prices, China, RBA policy; a risk-on currency |
| USD/CAD | Loonie | Oil prices, Bank of Canada, US data |
| NZD/USD | Kiwi | Dairy prices, RBNZ policy; trades like AUD but thinner |
Why they are cheap to trade
Volume concentrates in the majors because the dollar is on one side of nearly ninety percent of all forex transactions. Deep liquidity means many quotes at every price, so the spread between bid and ask is narrow, often below a pip at a good broker during London and New York hours. That is the practical reason to start with them: the cost of being wrong is the same in any pair, but the cost of simply entering and exiting is lowest here.
Choosing among them
Most beginners settle on one or two pairs and learn their behaviour. EUR/USD is the usual first choice for its low spread and calm behaviour. GBP/USD moves further each day, which suits some styles and punishes others. USD/JPY and AUD/USD are most active during Asian hours, which suits traders in that time zone. There is no best major; there is the one whose hours and temperament fit yours.
Key takeaways
- Seven pairs, each containing the US dollar, make up the majors.
- They carry the tightest spreads because they carry the most volume.
- Start with one or two and learn how they move at the hours you can trade.
Knowledge check
Trading forex, CFDs and other leveraged products carries a high risk of losing money. This lesson is general education, not advice. Risk disclosure.