Base 2: Paires
In Forex, there are so-called major currencies.
The symbol of each currency consists of three letters.
The first two letters represent the country of origin.
The third represents the name of the currency of this country.
For example, GBP for Great Britain Pound.
One exception, however, is the euro, which is represented by EUR.
The Swiss franc is represented by CHF: Swiss Franc Community
The major currencies are:
In the Forex, we find the major pairs, minor and exotic.
Each major pair is formed by a major currency and the US dollar.
The major pairs are those that cost the least to compromise.
The major pairs are:
Each minor pair is formed by the major currencies between them.
The US dollar is not there.
They are a bit more expensive to compromise but the cost is reasonable.
The minor pairs are:
Exotic pairs are formed by all other currencies.
The US dollar can be included or not.
The transaction cost of these exotic pairs is very high.
Here are examples of exotic pairs:
The Nomenclature of Pairs
The order in which the currencies are represented in each pair is invariable. This nomenclature was established according to the value of the currencies
when currency pairs were created for Forex.
If we take GBP / USD for example, you will never see USD / GBP.