In this course, we’ll be talking about What is traded in forex. It’s important to understand the forex market is an online exchange for all currency pairs around the world. As the currency exchange rate fluctuates anyone can choose to buy or sell currencies. If you forecast a move correctly it is possible to make a profit. When trading specifically in forex, you are always buying one currency and selling the other. This is why all currencies are ordered in pairs. Simply put a currency pair compares the value of one currency to another currency.  

It’s the quotation of two different currencies with the value of one currency being quoted against the other. Let's look at an example: EUR/USD is a currency pair. The EUR is what’s called a currency code and represents the official currency of the European Union. The USD is the currency code for the U.S. dollar. 

The EUR/USD means it’s the euro value being quoted against the U.S. dollar value. A currency pair always quotes the value of any two currency pairs together. 

Let’s take a look at all the pairs you can trade in the forex market. 

First, let’s start off with major and minor currency pairs. 

Starting with major currency pairs, these are any currencies that are paired or also known in the trading world as ‘pegged’ to the U.S. dollar. The EuRUSD is known as the Euro Dollar. The USDJPY is called the Dollar-Yen. GBUSD is properly referred to as the Pound Dollar.  The USDCHF is known as the Dollar Swiss. The USDCAD is called the Dollar Canadian Dollar.  AUDUSD goes also by the Aussie Dollar and the NZDUSD  has the famous title of being called the Kiwi dollar. 

Next, we have the minor currency pairs. Minor currency pairs are any currencies traded against one another that doesn’t involve the U.S. dollar. These are also known as cross pairs. Below we have currency cross pairs which are called:

Euro crosses - EUR/JPY, EUR/CBP, EUR/AUD, EUR/NZD, EUR/CAD, EUR/CHF

Pound crosses - GBP/EUR, GBP/JPY, GBP/AUD, GBP/NZD, GBP/CAD, GBP/CHF

Aussie crosses - AUD/EUR, AUD/JPY, AUD/GBP, AUD/NZD, AUD/CAD, AUD/CHF

Swiss franc crosses - CHF/JPY, CHF/EUR, CHF/GBP, CHF/AUD, CHF/NZD, CHF/CAD

Kiwi crosses - NZD/EUR, NZD/JPY, NZD/GBP, NZD/AUD, NZD/CAD, NZD/CHF

Then we have what’s called the exotic currencies. 

Exotic currency pairs include a major currency pair with a currency of a developing economy.

You will not find exotic pairs as often as you will find minor and major pairs. They are rare to find and least commonly traded. These include but are not limited to: 

Hong Kong Dollar - EUR/HKD, USD/HKD, CHF/HKD

South African Rand - GBP/ZAR, USD/ZAR, EUR/ZAR

Mexican Peso - EUR/MXN, USD/MXN, GBP/MXN

Now these are just a few of the most popularly traded exotic pairs

Yet take note there are many more.

Last but not least, let’s review what knows as commodities. A commodity is a raw material or primary agricultural product that can be mined. 

Some commodities include: 

• Oil

• Gas

• Gold

• Silver

• Other metals

So there you have it, now you know what’s traded in the very large and diverse wonderland of a market known as forex.

Remember, learning is a journey. It will take time to fully understand how to effectively trade in the FOREX market.