Major Currency Pairs
Forex Basics
The majors are the most heavily traded currency pairs, all including the US dollar — such as EUR/USD, GBP/USD, USD/JPY, and USD/CHF — and they typically offer the tightest spreads.
What are major currency pairs?
Major currency pairs (“the majors”) are the most actively traded currency pairs in the forex market. What defines a major is simple: it always pairs the US dollar with one of a handful of other large, freely traded currencies. Commonly cited majors include:
| Pair | Currencies |
|---|---|
| EUR/USD | Euro / US Dollar |
| USD/JPY | US Dollar / Japanese Yen |
| GBP/USD | British Pound / US Dollar |
| USD/CHF | US Dollar / Swiss Franc |
| AUD/USD | Australian Dollar / US Dollar |
| USD/CAD | US Dollar / Canadian Dollar |
Why the majors dominate trading volume
The US dollar sits on one side of the overwhelming majority of global forex transactions, since it’s the world’s leading reserve and trade-invoicing currency. Combined with deep participation from banks, corporations, and traders worldwide, this gives major pairs exceptionally strong liquidity — meaning large volumes can be traded with minimal impact on price.
Worked example
Because of that deep liquidity, majors like EUR/USD often carry some of the tightest spreads in the market — sometimes under a pip with a competitive broker, compared to several pips or more on a thinly traded exotic pair. On a $100,000 (1 standard lot) position, a 0.8-pip spread costs roughly $8, while a 5-pip spread on a less liquid pair could cost roughly $50 for the same size trade — a meaningful difference for active traders.
Why it matters to a trader
Major pairs are usually the natural starting point for new forex traders: they’re well understood, extensively covered by fundamental analysis, and generally cheaper to trade due to competitive spreads and deep liquidity. Comparing majors against minor and exotic pairs also helps traders understand the direct trade-off between liquidity, cost, and volatility across the market.
Quick recap
- Major pairs always include the US dollar and are the most traded pairs in forex.
- Deep liquidity in the majors generally means tighter spreads and easier execution.
- They’re a common starting point for traders before exploring minors and exotics.