All forex trading is expressed as a combination of the two currencies being exchanged. There are three categories of currency pairs:

1. the "majors"
2. the "crosses"
3. the "exotics"

The major currencies and the major forex pairs are two related but distinct concepts in the forex market. The EIGHT major currencies are the most widely traded and stable currencies in the world

The SEVEN major forex pairs, on the other hand, are the most actively traded currency pairs in the forex market. These pairs are typically made up of one of the major currencies and another currency, and are considered majors because they are the most liquid and have the highest trading volume in the forex market.

Cross currency pairs or cross-rates; currency pairs that include any two of the major currencies except the US dollar. e.g. EUR/YEN, GBP/CAD.

Euro Crosses Yen Crosses Pound Crosses Other Crosses Euro Crosses

Yen Crosses

Pound Crosses

Other Crosses

An exotic currency is a currency from countries with developing or emerging markets.

Exotic currency pairs are made up of one major currency paired with the currency of an emerging economy, such as Brazil, Mexico, Chile, Turkey, or Hungary alongside one major currency