Major Pair
Also called: majors, major currency pair
Any forex pair that includes the US dollar and one other top-tier global currency — the most liquid pairs in the world.
EUR/USD's 2024 daily range averaged 65 pips. A trader risking 20 pips per setup with a 2:1 reward had room for 3 full setups every single day without ever needing exotics.
Related terms
Minor Pair
intermediateA forex pair made up of two major currencies that does NOT include the US dollar — like EUR/GBP or AUD/JPY.
Exotic Pair
advancedA forex pair that includes one major currency and one currency from a smaller or emerging-market economy — like USD/TRY or USD/ZAR.
Currency Pair
beginnerTwo currencies quoted together — you're always buying one and selling the other at the same time.
Cross Pair
intermediateA pair that doesn't include the US dollar — used to trade one non-USD currency directly against another.
Spread
beginnerThe difference between the buy (ask) and sell (bid) price — your cost of entering a trade.
P&L (Profit and Loss)
beginnerThe total profit or loss on your trades — the scorecard for your trading performance.