Difference Between Major, Minor and Exotic Currency Pairs

In forex trading and when you are doing forex analysis, you will be dealing with currency pairs a lot. Before we get into the details, let’s see an explanation of what is a currency pair.

Four Types of Currency Pairs and Their Characteristics

It goes without saying that there are quite a considerable number of currencies that forex traders can choose when trading. However, the vast majority of forex currency traders tend to concentrate on common pairs, such as the EUR/USD, GBP/USD, or USD/HKD etc. But there are certain types of currency pairs.

Here we provide a brief overview of some of the characteristics of four of the most common currency pair types, and why they are important for trading.

How to Read and Understand a Currency Quote

After you have downloaded and opened the Metatrader 4 software and started familiarising yourself with the platform, the first thing you will most certainly come across is the forex price quote for your chosen currency. The quote is basically a record of a previous transaction in which a currency pair changed hands.