TRADING CURRENCIES IN PAIRS, MAJOR AND EXOTIC CURRENCY PAIRS
In forex currencies are traded in pairs. The first currency in a pair is called the base currency, and the second currency in a pair is called the counter currency. The price chart of a currency pair represents the price of the base currency in terms of counter currency. A popular major currency pair is EUR/USD, where EUR is a base currency, and the USD is a counter currency, and the price chart of the EUR/USD illustrates the price of euro in terms of USD e.g. 1 EUR = 1.23456.
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The price of the EUR/USD go up, if the EUR is stronger than the USD, and the price chart of the EUR/USD go down, if the USD is stronger than the EUR.
When we see that the EUR has better fundamental and technical condition, we place a buy order on EUR/USD pair. It means we convert our USD into EUR. On the other side,when we see that the USD has better fundamental and technical condition, we place a sell order on EUR/USD pair. It means we convert our EUR into USD.
What are the major currency pairs ?
The simple answer of this question is that the major currency pairs are those which frequently traded in forex market. We can see USD appears in all major currency pairs in forex market. This is because United States economy is one of the 3 largest economy, USD is the reserve currency of the world, United States has the largest and most liquid financial markets in the world, United States has a super stable political system ,and USD is the medium of exchange for many cross-border. 
Other currency pairs that have no USD are called the cross-currency pairs or simply the “crosses.” The table above shows the Euro crosses. There are numerous number of crosses in forex market available to trade.
What are the exotic currency pairs?
Exotic currency pairs are the pairs that have one major currency and one minor or infrequently traded currency. Most of the traders avoid the exotic currency pairs while some other traders know how to take the advantage of the exotic currency pairs.
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Now you know, what are the major and exotic currency pairs in forex market? You also know what are the crosses in forex market ? If you have any questions, suggestions or complements, you can drop a comment below.
Now you know, what are the major and exotic currency pairs in forex market? You also know what are the crosses in forex market ? If you have any questions, suggestions or complements, you can drop a comment below.
When we talk about exotic pairs, very few traders around the world actually manage to trade with this type of currency, In fact most experts around the world recommend not to work with them because of their absolute complexity, very advanced studies are needed to understand how to trade with these pairs, for these reasons most prefer to use hard currencies as their value does not change very regularly, but the few who trade with exotic pairs achieve much success well above the rest, for example we have Adriano Aaron Caruso who achieved a resounding success, especially in the year 2002 that due to his work was requested by multiple companies that were rejected for having personal projects. He is currently the designer of automatic systems for exotic pairs, being one of the best that can be obtained in the market today.
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