If you’re just starting out in forex trading, one of the first things you’ll encounter is the term currency pair. You’ll see symbols like EUR/USD, GBP/JPY, or AUD/NZD and wonder, “What do they mean?”
Currency pairs are at the core of forex trading — they’re how money is bought and sold in the global market.
In this beginner-friendly guide, you’ll learn exactly:
What currency pairs are
The difference between major, minor, and exotic pairs
How to choose the best pairs to trade
Why some pairs move differently than others
Let’s get started.
💱 What Is a Currency Pair?
A currency pair shows the exchange rate between two currencies — how much of one currency you need to buy another.
For example:
EUR/USD = 1.1000 means 1 Euro = 1.10 US Dollars
Here’s the structure:
Base currency: The first in the pair (e.g., EUR)
Quote currency: The second (e.g., USD)
If EUR/USD rises, it means the Euro is strengthening against the US Dollar.
📊 Types of Currency Pairs
There are three main categories:
🔵 1. Major Pairs
These are the most traded and most liquid pairs in the world. They all include the US Dollar (USD), which is the most dominant global currency.
Examples:
EUR/USD (Euro/US Dollar)
GBP/USD (British Pound/US Dollar)
USD/JPY (US Dollar/Japanese Yen)
USD/CHF (US Dollar/Swiss Franc)
These pairs often have low spreads, high volume, and are great for beginners.
✅ Pro Tip: VTM AI is optimized to scan major pairs for high-probability setups based on supply/demand and market structure — even if you’re not a chart expert.
🟢 2. Minor Pairs (Crosses)
These currency pairs don’t include the US Dollar but still involve strong economies.
Examples:
EUR/GBP
GBP/JPY
AUD/JPY
EUR/AUD
They can have wider spreads and are often more volatile than majors — which can be good for skilled traders using automation like VTM AI.
🔴 3. Exotic Pairs
These involve one major currency and one from a developing or smaller economy.
Examples:
USD/NGN (US Dollar/Nigerian Naira)
EUR/TRY (Euro/Turkish Lira)
USD/ZAR (US Dollar/South African Rand)
Exotic pairs can have very high spreads, low liquidity, and sharp movements. Beginners should avoid them until they gain experience.
📈 How to Choose the Right Pairs
Start with Majors: They’re more stable and beginner-friendly
Understand Timezones: EUR/USD moves more during London/New York hours
Use Tools Like VTM AI: It filters through multiple pairs and identifies where the best setups are happening
Use a Reliable Broker: Deriv gives you access to dozens of pairs with low spreads and fast execution — perfect for both manual and automated strategies.
🧠 Final Thoughts
Currency pairs are the foundation of forex trading. Understanding the difference between major, minor, and exotic pairs helps you choose wisely and avoid unnecessary risk.
✅ If you’re new, stick to EUR/USD, GBP/USD, or USD/JPY.
✅ Use smart tools like VTM AI to simplify trade decisions.