There are multiple currencies in the world, but not all of them have the same reputation and not all of them are equally traded. Typically, the American dollar is one of the most interesting currencies.
In addition to the American dollar, there are 7 other currencies which are rated highly:
- Euro (€) – EUR
- Pound sterling (£) – GBP
- Australian dollar ($) – AUD
- New Zealand dollar ($) – NZD
- Canadian dollar ($) – CAD
- Swiss franc (Fr) – CHF
- Japanese Yen (¥) – JPY
A pair consisted of one of the currencies listed above and the USD is called a major. The majors are the most frequently traded pairs and these pairs constitute 85% of the total forex trading on the market. Other, lower-rated currencies are usually paired with the USD and such a pair is called a minor. When a lower-rated currency is paired with the currency other than the US dollar, that pair is called a currency cross, or just a cross.
The number of currency pairs which are offered by a forex brokers is one of the key criteria for establishing the reputation of the brokers. Brokers that offer a larger number of currency pairs should be preferred over ones that offer fewer pairs. Most brokers offer all majors, as well as a number of minors and crosses. If you’re looking to trade a particular pair, then you should definitely check whether the broker in question offers that pair. On the other hand, if you’re looking to trade only the majors, there are other things which you should take into consideration.