Last update 2020.08.07
The largest players in the foreign exchange market (forex) have their trading preferences, so some currencies are traded more than others. This is the reason by which there is a segmentation of forex pairs or symbols, usually described as Majors, Minors and Exotics.
We will talk several times about the important role that the US dollar plays in forex trading, so the dollar is its leading currency.
Once an economy becomes big on the world stage, its currency becomes attractive to the forex market. Thus, large economies also play an important role in this market.
Other currencies can be more volatite, like the Turkish lira and Hong Kong dollar. They have an increasing volume of trading transactions and may become Majors in the future.
Larger and USD’s influence on forex
The eight most traded currencies are called major currencies. Their combination with the United States dollar generates the seven major currency pairs, consequently, they are among the most traded pairs in the forex market.
- Dollar (USD)
- Euro (EUR)
- Japanese yen (JPY)
- British pound (GBP)
- Australian dollar (AUD)
- Canadian dollar (CAD)
- Swiss franc (CHF)
- New Zealand dollar (NZD)
EUR / USD, for example, represents more than 20% of all forex trading transactions, followed by USD / JPY (2nd), GBP / USD (3rd).
The major currencies attract more volume and are therefore more liquid, but that does not mean that you will be successful in your trades because there are many other factors involved in forex trading.
We always recommend that you look for tools, such as Wiseinvest and Wise AI trading system, that can help you invest efficiently.
Wiseinvest has a professional team to monitor and select the most suitable financial content for your strategy. Wiseinvest uses AI to identify forex trading signals with high probability opportunities in the near future for live trading.
Opportunities for using Artificial Intelligence
Unlike major forex pairs, currencies with a smaller market share of global volumes are known as minor currencies and their related minor pairs. Meanwhile, pairs that include only major currencies, except the USD, are considered cross pairs. While smaller pairs may be less popular and not widely-traded, that does not mean that there is little volume or liquidity.
For example, most smaller pairs have higher average daily trading volume than some national stock exchanges.
Some example cross pairs with significant volume include the EUR/GBP, GBP/JPY and EUR/CHF which are highly liquid.
Most forex traders focus on the most liquid and popular currencies, simply because it is difficult to monitor many pairs at the same time. That is why AI is so important today for retail forex trading. Applied correctly, the right trading tools can help broaden an investor’s perspective on forex opportunities.
Exotics and the Future of Chinese Currency
The Chinese yuan currency (CNY) also known as Renminbi (RMB) is one of the most-traded emerging currencies, yet is restricted to mainland China due to the regulations by the Chinese Government. CNY is known as the on-shore currency in China, while CNH is the off-shore version of the Chinese yuan.
There are multiple regulatory agencies in China that implement strict controls around the flow of onshore and offshore currency, in order to regulate monetary policy by decreasing or increasing the supply. This managed exchange rate for the onshore CNY is comparable to a state-managed currency, whereas the price of the CNH is more market-driven.
Exotic Forex pairs are the combination of a main currency with a currency of an emerging or strong economy, but smaller from a global perspective. Hong Kong, Singapore, Brazil and European countries outside the euro zone, or the combination of of two emerging currencies in a single exotic pair.
One benefit of trading exotic pairs is that they offer higher potential returns due to their wide price fluctuations.
On the other hand, it also means greater risk of trading and potentially wider spreads. Check out here the best forex brokers to trade. They provide lower spreads and high liquidity.
Some of the most traded exotic pairs are USD/CNY, USD/HKD, USD/SEK, USD/SGD, USD/TRY.
AI and the goal of profitability
Without technology it would be nearly impossible to follow all currency pairs in the forex market.
With artificial intelligence (AI), you can track multiple forex currencies in real-time. Wiseinvest AI trading system can invest automated for you in partner brokers. You can also trade in forex broker of your choice with AI signals; Our AI system monitors all forex pairs and warn you, every four hours, whether or not there is an opportunity to start a position when trading manually or automatically with AI-Trading.
We have more than ten years of data to be highly accurate in our suggestions, with average returns of more than 38% per year for the past four years with our AI trading and AI signals system.
The best way to trade forex
Check out the 3 steps to trade forex automated with our AI.
Don’t you have a broker account yet? Our AI is integrated to trade automated with the broker Oanda. Click here to open an account.
With Automated AI trading you do not need MT4 / MT5 and other trading platforms to invest in forex. All forex trades are automatically placed into your broker account and you can monitor the AI trading performance directly on our dashboard.
When investing through Wiseinvest automated AI trading or AI forex signals, you do not need to calculate pips or change the leverage in your forex broker account. Learn more about leverage in forex trading clicking here.
- Major currency pairs all include the US dollar currency in the pair, due to the US influence in the world economy.
- Minors are the combinations of the other seven most influential currencies among themselves; They represent a very significant volume of trading.
- Exotic currency pairs are those from other major economies, but which are not yet common or represent a smaller share of global forex trading volumes.
- To monitor global forex pairs, it is mandatory to have the right trading tools and technology support.
Only with Artificial Intelligence, like Wiseinvest AI trading and AI signals, can you really follow so many different forex investment options. Our AI system only costs a small fee each month and opens up opportunities to trade forex like a professional trader.
Did you like our article about Forex Currency Pairs: Majors, Minors and Exotics? Read more on our trading academy.
Disclaimer: Forex and Contracts for Difference (CFDs) are complex instruments and come with a high risk of losing money due to leverage. Forex trading is not suitable for everyone. You should consider whether you understand how forex and CFDs work and whether you can afford to take the high risk of losing your money.
The forex brokerages displayed shall disclaim the overall performance of traders in their platforms. Oanda warns that 76.8% of retail forex traders lose money trading CFDs. XTB warns that 80% of retail forex traders lose money trading CFDs. The forex broker Fxcm warns that 69.66% of retail forex traders lose money trading CFDs.
The performances aforementioned are not related to Wiseinvest AI forex trading and AI forex signals system. You can check the performance of our AI forex system on our dashboard.