Forex Learning

Minor or Cross-Currency Pairs

Minor pairs are currency pairs that do not include the US Dollar. The most active minor pairs often feature the Euro on one side, such as EUR/GBP, EUR/JPY, and EUR/CHF » Learn about the Forex Majors

The Forex Minors

Minor currency pairs—often referred to as “forex crosses”—are defined by the absence of the US Dollar (USD) in the pairing. Unlike the major pairs (such as EUR/USD, USD/JPY, and GBP/USD), which dominate trading volumes due to the USD's status as the global reserve currency, minor pairs highlight important trading relationships between other leading world currencies.

Although they don’t include the USD, many minor pairs are actively traded and maintain strong liquidity. Their dynamic price movements and volatility make them attractive to a broad spectrum of market participants, from institutional investors to retail traders, who seek diversification beyond USD-based instruments.

Some of the most actively traded minor pairs include combinations involving the Euro (EUR), British Pound (GBP), Japanese Yen (JPY), and Swiss Franc (CHF), reflecting their importance in global financial markets.

1. EUR/GBP

Description: Euro (EUR) to British pound sterling (GBP)

• Market Share (BIS): 31.3% vs 12.8%

• Central Banks Involved: » ECB against the » BoE

• Total reserves (including gold): 565 billion USD vs 130 billion USD

EURGBP INFORMATION

The cross rate of EUR to GBP is referred to as the ‘Chunnel’ due to the Channel Tunnel that connects the UK and Europe. Although EUR/GBP is not a Forex major, it is a highly liquid currency pair. Global brokers offer EUR/GBP with very tight spreads, making it a popular choice for day traders and scalpers.

■ (↑) Historical High: 0.9805 (2008)

■ (↓) Historical Low: 0.5678 (2000) – 0.3380 (1953)

Read more: Forex Minors or Crosses

FOREX TERMINOLOGY (A-Z)

A

American Option

It is an options type that can be exercised at any valid business date until the options maturity.

Appreciation

Currency appreciation happens when the domestic currency is strengthening against foreign currencies. Currency appreciation is based on the powers of demand and supply.

Arbitrage

It is a common practice that takes advantage of tiny price differentials between different financial markets.

Asian session

Refers to the Tokyo session that lasts from 23:00 to 08:00.

Ask Rate

Ask rate (or offer) is the rate at which traders can buy a Forex currency. The rate at which a currency can be sold is called bid.

B

Back Office

The department of a Forex broker that is responsible for settling financial transactions.

Read more: Forex Terminology

Key Insights into the Seven Forex Majors

🏛️ The 7 Major Forex Currency Pairs and Their Nicknames

The 7 majors are the most actively traded currency pairs in the Foreign Exchange market and possess the highest levels of liquidity. 

• EUR/USD – Euro vs. US Dollar -Nickname: Fiber

• USD/JPY – US Dollar vs. Japanese Yen -Nickname: Gopher or simply "Yen"

• GBP/USD – British Pound Sterling vs. US Dollar -Nickname: Cable

• USD/CHF – US Dollar vs. Swiss Franc -Nickname: Swissy

• AUD/USD – Australian Dollar vs. US Dollar -Nickname: Aussie

• USD/CAD – US Dollar vs. Canadian Dollar -Nickname: Loonie

• NZD/USD – New Zealand Dollar vs. US Dollar -Nickname: Kiwi

🎯 Key Characteristics

• Exceptional Liquidity: These 7 pairs represent roughly 70-80% of the daily trading volume in the Forex market. This high trading activity results in:

• Narrow Spreads: The gap between the Bid (selling) and Ask (buying) prices is minimal, which lowers transaction costs.

• Quick Execution: Orders, including large ones, are usually filled swiftly at or very close to the intended price, minimizing slippage.

• Efficient Pricing: High liquidity promotes stable and accurate price discovery, allowing market information to be reflected promptly.

🔄 Why the USD Holds a Central Role:

• The US dollar serves as the primary reserve currency for central banks around the world.

• A large portion of global trade is carried out in USD, especially for essential commodities like oil and gold, which are typically priced in dollars.

• The strength and size of the US economy underpin the central role of its currency in international finance.

• The US boasts the most extensive and liquid financial markets, ensuring a steady and substantial flow of USD in global transactions.

 » Learn also about the Forex Minors

Read more: Forex Majors

The Forex Trading Tips

Foreign exchange is the most competitive financial market in the world. Here are some key tips for trading Forex currencies. Always remember that confidence and skill are developed through experience—they cannot be bought.

Forex Trading Tip: Trade like a Big Shark not like a Little Penguin

There’s a little-known secret that every wealthy investor understands—it's called Great-Reward Investing. Most Forex traders open positions with a reward-to-risk (R/R) ratio of 1:1 to 2:1; they trade like cautious penguins. With a 1:1 R/R ratio, you need at least a 60% win rate just to break even after transaction costs. In contrast, seasoned professionals—“the sharks”—seek trades with R/R ratios of 5:1 or higher. With a 5:1 R/R, you can lose three out of four trades and still turn a solid profit. That’s a game-changer.

To profit from Great-Reward Trades, you need to:

(a) Use conservative leverage—no more than 10:1 (or less)

(b) Follow long-term trends, typically visible on H4 and D1 charts

Here’s how to apply this strategy:

■ Identify a strong trending market visible on the H4 or D1 charts.

■ Confirm the trend continuation using the MACD histogram and chart patterns such as double tops and bottoms, pennants, flags, and ascending or descending triangles.

■ Time your entry using the M5 or M15 charts and confirm it with the RSI(21).

■ Let your profits run.

Read more: Forex Trading Tips