Currency Crosses
Understand major, minor, and exotic currency pairs and how they behave.
Last reviewed: 2026-03-06
Article content
Overview
Currency crosses are pairs that do not include the US dollar. Major pairs (e.g. EUR/USD) include the dollar; crosses (e.g. EUR/GBP) do not. Exotic pairs include a major and an emerging market currency.
Major Pairs
Major pairs: EUR/USD, GBP/USD, USD/JPY, USD/CHF, AUD/USD, USD/CAD. These have the tightest spreads and highest liquidity. They move on US data and Fed policy, plus the other currency's economy.
Minor Pairs
Minor pairs (crosses): EUR/GBP, EUR/JPY, GBP/JPY, AUD/JPY. No USD. Spreads are wider; liquidity is lower. Useful when you have a view on two non-USD economies.
Exotic Pairs
Exotic pairs: USD/TRY, USD/ZAR, USD/MXN. One major, one emerging. Much wider spreads and higher volatility. Risk of sudden moves and liquidity gaps.
When To Trade
Trade majors for tight spreads and predictable behavior. Use minors when you have a strong view on a cross. Avoid exotics unless you understand the risks and can afford wider stops.
Knowledge check
1 of 3What defines a major currency pair?
FAQ
Common questions about this topic.
What is the difference between major and minor pairs?
Majors include USD (e.g. EUR/USD). Minors (crosses) do not (e.g. EUR/GBP). Minors typically have wider spreads and less liquidity.
Why are exotic pairs riskier?
Wider spreads, higher volatility, and less liquidity. Emerging market currencies can gap on political or economic shocks.
Related articles
Continue learning with these topics.
Disclaimer and sources
Educational content only. Not financial advice.
Important disclaimer
Forex trading involves substantial risk of loss. This content is for educational purposes only and is not financial advice.