Minors (Currency pairs)
Currency pairs are the quotation of one currency against another, representing the value of one currency in terms of another. In the foreign exchange (Forex) market, currencies are traded in pairs, with each pair consisting of two currencies: the base currency and quote currency.
Currency pairs represent a dynamic trading opportunity within the Forex market. In our company we are committed to assisting traders navigate the landscape, providing strategies designed to enhance returns as well as managing risks effectively.
Chart | Description |
---|---|
AUD/NZD | Australian Dollar / New Zealand Dollar |
AUD/CAD | Australian Dollar / Canadian Dollar |
CAD/CHF | Canadian Dollar / Swiss Franc |
CAD/JPY | Canadian Dollar / Japanese Yen |
No USD Involvement
Minor pairs do not include the US Dollar (USD). Instead, they consist of two other major currencies, such as EUR, GBP, JPY, AUD, or CHF.
Know moreLower Liquidity Compared to Majors
Minors have less trading volume than major currency pairs (like EUR/USD or USD/JPY), leading to wider spreads and potentially less price stability.
Know moreHigher Volatility
Due to lower liquidity, minor pairs often experience higher price swings and more unpredictable movements compared to major pairs.
Know moreInfluenced by Regional Factors
Minors are more affected by local economic events, geopolitical issues, and central bank policies of the respective countries rather than global trends.
Know moreHigher Trading Costs (Wider Spreads)
The bid-ask spreads are wider, meaning traders face higher transaction costs compared to major pairs, making them less attractive for high-frequency traders.
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