What it is:
How it works (Example):
Major pairs are the four pairs of currencies that are most commonly traded in the foreign exchange markets.
The major pairs are Euro/U.S. Dollar (EUR/USD); U.S. Dollar/Japanese Yen (USD/JPY); U.S. Dollar/Swiss Franc (USD/CHF); British Pound/U.S. Dollar (GBP/USD). There are about a dozen popular pairs that constitute the majority of forex trading, but these four are the biggest.
Buying and selling currency you’re paying with (that is, the currency you’re selling) and the currency you’re buying. Thus, currencies are traded in pairs. The base currency is the currency you’re selling, and the counter currency is the currency you’re buying.always involves two currencies: the
For example, if you purchase a JPY/USD pair that is quoted at 1.40, then for every 1.40 U.S. dollars you sell, you get 1 Japanese yen. The counter currency here is the yen.
Why it Matters:
Understanding which currency markets because they are so popular.you're buying and selling in foreign exchange transactions is crucial, especially with the major pairs. They drive a of the activity in the