Forex Currency Pairs: What Forex Beginners Should Know About Major Forex Currency Pairs

As an established Forex trader, I can tell you that there is a lot of information that is best left unread. In fact, I hope none of you get bogged down by information overload when it comes to Forex. Forex is complicated enough, but some sources just don’t make it any easier to learn.

I like to keep things simple, especially when teaching the basics of the forex market. You may think it’s an obvious tactic, but it’s not that simple for some Forex “experts”.

That’s why when I train my young Forex learners, I make sure to tell them only what they need to know at first. For me, I can’t just start talking to someone about currency pairs and then jump right into advanced swing trading. I would do that if I was in the business of melting your mind, but forgive me if I’m not.

So one of the first things I start my newbie with is an understanding of all the major Forex currency pairs. I don’t expect you to memorize them from scratch, but they are a good starting point that I think you should pay close attention to.

EUR/USD – One of the most well-known pairs, this is the currency pair of the Eurozone and the United States of America. The Eurozone is made up of all the European countries that have adopted the euro as their main currency (a function of being part of the European Union). Also commonly known as Eurodollar.

USD/JPY – Another high volume pair, this is the ISO currency pair for the United States and Japan. Market traders have adapted to calling this the dollar-yen.

GBP/USD – Following the trend of having the US dollar on one side of the pair, the UK/US pair is sometimes referred to as the sterling dollar. Traders have also been known to refer to it simply as “sterling” or “cable” for short.

USD/CHF – This pair boasts one of the funniest nicknames of all, commonly known as “Swissy”. The currency pair represents the currencies of the United States and Switzerland, and its long name is Swiss-dollar.

Those are just 4 of the most traded currency pairs on the forex market. There are actually 7 “major” currency pairs in total, the other three being USD/CAD, AUD/USD and NZD/USD. With this new understanding you have of the most traded pairs, you have taken a big step towards being truly ready to trade.