DEFINITION of 'Major Pairs'

The major pairs are the four forex pairs which are considered to be the most heavily traded in the forex market. The four major pairs are: EUR/USD, USD/JPY, GBP/USD, USD/CHF.

These four major pairs are deliverable currencies and are part of the g10 currency group.

BREAKING DOWN 'Major Pairs'

These currency pairs are considered by many to drive the global forex market and are the most heavily traded. Although it is widely regarded that the major pairs consist of only four pairs, some believe that the USD/CAD and AUD/USD pairs should also be regarded as majors. However, these two pairs can be found in the group of pairs known as the "commodity pairs."

The five currencies that make up the the major pairs - U.S. dollar, euro, Japanese yen, British pound and Swiss franc - are all in the top seven of the most traded currencies. And as expected, these currency pairs are the most liquid.

 

 

RELATED TERMS
  1. Currency Pairs

    Currency pairs are two currencies with exchange rates coupled ...
  2. Currency Pair

    A currency pair is the quotation of one currency against the ...
  3. Open Position Ratio

    The open position ratio is the percentage of open positions held ...
  4. Commodity Pairs

    Commodity pairs are three forex pairs involving currencies from ...
  5. Pairs Trade

    A pairs trade is a trading strategy that involves matching a ...
  6. GBP/USD (British Pound/U.S. Dollar) ...

    The abbreviation for the British pound and U.S. dollar (GBP/USD) ...
Related Articles
  1. Trading

    Guide to Pairs Trading

    Pairs traders go long on an under-performer while simultaneously going short on the over-performer.
  2. Trading

    The U.S. dollar and the Japanese yen: An interesting partnership

    Learn more about the USD/JPY relationship, wherein the yen can be partially explained in terms of Treasury bonds.
  3. Trading

    Forex: Identifying Trending And Range-Bound Currencies

    Gain a trading edge by learning how macroeconomic forces play out differently for various pairs in the forex market.
  4. Trading

    Strategies for part-time forex traders

    Learn strategies for part-time forex traders to profit even with an inconsistent trading schedule. Find the information you need today!
  5. Investing

    An Introduction To Pairs Trading With ETFs

    This strategy can help investors reduce portfolio volatility and make money in uncertain markets.
RELATED FAQS
  1. In forex, what are the commodity pairs?

    In forex, the commodity pairs consist of the heavily-traded currency pairs and contain the Canadian, Australian and New Zealand ... Read Answer >>
  2. Why is the U.S. dollar shown on the top of some currency pairs and on the bottom ...

    All currencies are traded in pairs. The first currency in the pair is called the base currency while the second is called ... Read Answer >>
  3. What is the value of one pip, and why are pips different between currency pairs?

    Pips relate to the smallest price moves of foreign exchange rates. This differs from currency pairs such as EUR/USD, which ... Read Answer >>
  4. Why is the British pound / U.S. dollar currency pair known as "trading the cable"?

    The British pound / U.S. dollar currency pair is one of the oldest and most widely-traded currency pairs in the world. The ... Read Answer >>
  5. What is the difference between trading currency futures and spot FX?

    The main difference between currency futures and spot FX is when the physical exchange of the currency pair takes place. Read Answer >>
  6. How is spread calculated when trading in the forex market?

    First, remember that in the forex markets investors trade one currency for another. Therefore, currencies are quoted in terms ... Read Answer >>
Hot Definitions
  1. Gross Profit

    Gross profit is the profit a company makes after deducting the costs of making and selling its products, or the costs of ...
  2. Diversification

    Diversification is the strategy of investing in a variety of securities in order to lower the risk involved with putting ...
  3. Intrinsic Value

    Intrinsic value is the perceived or calculated value of a company, including tangible and intangible factors, and may differ ...
  4. Current Assets

    Current assets is a balance sheet item that represents the value of all assets that can reasonably expected to be converted ...
  5. Volatility

    Volatility measures how much the price of a security, derivative, or index fluctuates.
  6. Money Market

    The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities ...
Trading Center