There are dozens of tradable currency pairs, but a handful account for most activity. The pair you choose affects your costs, the hours you should trade and even the leverage you are allowed.
Majors – two definitions
In market language, the "majors" are the most traded pairs against the US dollar: EUR/USD, USD/JPY, GBP/USD, USD/CHF, AUD/USD, USD/CAD and NZD/USD.
ESMA uses a stricter definition for leverage limits: a major pair is any combination of two of USD, EUR, JPY, GBP, CAD and CHF. So EUR/JPY and GBP/CHF are majors under ESMA (30:1 for retail clients), while AUD/USD and NZD/USD are not (20:1). Check any pair with the margin calculator.
Euro crosses
Pairs such as EUR/GBP, EUR/JPY and EUR/CHF let you trade the euro without the dollar. EUR/GBP is sensitive to relative ECB and Bank of England policy; EUR/CHF to safe-haven flows and the Swiss National Bank.
Central and Northern European pairs
EUR/PLN, EUR/CZK, EUR/HUF, EUR/RON, EUR/SEK, EUR/NOK and EUR/DKK are "exotic" in market jargon but local to millions of readers. Points to know:
- Spreads are wider and liquidity thinner outside European hours.
- EUR/DKK barely moves: the krone is pegged within ERM II.
- EUR/HUF and EUR/TRY can move sharply on domestic politics and central-bank surprises.
- Interest-rate differences can make overnight financing significant.
Volatility by pair
Volatility – how far a pair typically moves in a day – changes over time, so any "most volatile pairs" list goes out of date. As a rule of thumb:
- Lower volatility: EUR/CHF, EUR/GBP, EUR/USD (in pips, relative to its liquidity).
- Higher volatility: GBP/JPY, GBP/NZD, EUR/TRY, USD/ZAR, and crosses combining a "risk" currency with the yen.
Higher volatility is not better: it means wider stops for the same trade idea, and so smaller positions for the same risk. Measure it yourself with the Average True Range (ATR) indicator on the timeframe you trade, and size positions with the position size calculator.
Choosing pairs as a beginner
Start with one or two liquid pairs – EUR/USD and one pair involving your home currency if you want to understand it better. Learn how they react to data and central-bank decisions before adding more. Fewer pairs, known well, beat a screen full of charts.
This guide is general information, not personal financial, tax or legal advice. Rules change; we review this page regularly and show the date of the last update above. Found an error? Tell us. See our editorial policy.
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