Australian Dollar vs US Dollar — commodity currency, heavily correlated with iron ore and Chinese demand.
AUD/USD ('Aussie') is the classic commodity-currency proxy and a high-beta risk asset. Strong when Chinese growth and commodities are buoyant, weak when global growth disappoints.
Also called: AUDUSD, Aussie
Open full pageThe first currency in a pair — the one you're buying or selling.
In EUR/USD, EUR is the base. The quote (1.0800) tells you how many units of the quote currency one unit of the base buys.
EUR/USD = 1.0800 means 1 euro buys 1.08 US dollars. EUR is the base, USD is the quote.
Trader nickname for GBP/USD — comes from the 19th-century transatlantic telegraph cable that carried the rate.
GBP/USD was the first pair to be quoted in real-time across the Atlantic, via the transatlantic telegraph cable. The nickname stuck for 150+ years.
Open full pageA currency whose value is closely tied to its country's commodity exports — AUD, CAD, NZD, NOK, ZAR.
Commodity currencies tend to be high-beta risk assets — they rally with global growth and commodity demand, sell off during risk-off events. AUD (iron ore), CAD (oil), NZD (dairy), NOK (oil), ZAR (gold, platinum).
Also called: commodity-linked currency
Open full pageA currency pair that doesn't include the US dollar — e.g. EUR/GBP, AUD/JPY.
Cross pairs typically have wider spreads than majors because they're derived from two USD pairs internally. Their volatility profile is also different — often more directional than majors during specific sessions.
Also called: cross, non-USD pair
EUR/GBP, AUD/NZD, GBP/JPY are all crosses. EUR/USD, USD/JPY are not.
The three-letter standard code for each currency — USD, EUR, GBP, JPY, AUD, CAD, CHF, NZD, etc.
ISO 4217 is the international standard for currency identification. The first two letters typically come from the country code (ISO 3166), the third from the currency name. Some commodities have synthetic codes — XAU (gold), XAG (silver), XBT (Bitcoin).
Also called: ISO 4217
Open full pageEuro vs US Dollar — the world's most heavily traded currency pair, with the tightest spreads.
EUR/USD accounts for roughly 23% of daily FX volume. Tightest typical spread (0.1–1 pip), deepest liquidity, most analyst coverage. Driven primarily by ECB vs Fed policy differential.
Also called: EURUSD, Euro Dollar, Fiber
Open full pagePairs involving an emerging-market currency — e.g. USD/TRY, USD/ZAR, EUR/PLN. Wider spreads, higher volatility.
Exotic pairs can be very profitable for the prepared (huge moves, strong fundamentals) but punishing for the careless (wide spreads, sudden gaps, political risk). Carry trades historically favoured exotics for their yield differentials.
Also called: exotic pairs
USD/TRY moved from 17 to 30+ over 2022-2023 — multi-year trend driven by Turkish monetary policy.
Trader nickname for EUR/USD — modern analogue to GBP/USD's 'Cable' (fibre optic vs telegraph cable).
'Fiber' is the modern nickname for EUR/USD, riffing on Cable. Less commonly heard than 'Cable' for GBP/USD, but standard in trading rooms.
Open full pageBritish Pound vs US Dollar — nicknamed 'Cable'. Higher volatility than EUR/USD, driven by BoE vs Fed.
GBP/USD got its nickname from the transatlantic telegraph cable that originally carried the exchange rate quotes. Daily ranges are typically 30–50% wider than EUR/USD.
Also called: GBPUSD, Cable
Open full pageThe most heavily traded pairs, all involving USD: EUR/USD, USD/JPY, GBP/USD, USD/CHF, AUD/USD, USD/CAD, NZD/USD.
Majors account for roughly 75% of daily FX volume. Tightest spreads, deepest liquidity, most analyst coverage. Best place for beginners to start.
Also called: major pairs
Open full pageLess-traded major-currency crosses without USD — e.g. EUR/GBP, EUR/JPY, GBP/JPY, EUR/CHF.
Minors (sometimes called 'cross majors') still have deep liquidity but wider spreads than majors. Often offer cleaner trends because they're less driven by single-currency news.
Also called: minor pairs
Open full pageNew Zealand Dollar vs US Dollar — commodity currency tied to dairy exports and Australian fortunes.
NZD/USD ('Kiwi') is similar to AUD/USD but with smaller liquidity and slightly wider spreads. Strongly correlated with AUD; affected by RBNZ policy and global dairy prices.
Also called: NZDUSD, Kiwi
Open full pageThe second currency in a pair — the one used to price the base.
The quote currency is the 'denominator' of the exchange rate. P&L on a trade is naturally in the quote currency before being converted to your account currency.
Also called: counter currency, terms currency
GBP/JPY = 195.00 — JPY is the quote currency. A 100-pip move = 100 yen per unit of size.
A currency that central banks worldwide hold in significant quantities — USD is the dominant reserve currency.
The USD makes up ~60% of global FX reserves, followed by EUR (~20%), JPY, GBP, and increasingly CNY. Reserve status confers persistent demand for the currency and lowers its volatility versus most peers.
Open full pageA currency that traders buy during market stress — historically USD, JPY, CHF.
Safe-haven flows are driven by liquidity (USD), capital repatriation (JPY), and political neutrality + financial reputation (CHF). During risk-off events, expect strength in these currencies and weakness in commodity / EM currencies.
Also called: haven currency
Open full pageUS Dollar vs Canadian Dollar — CAD is a commodity currency tied to oil and US economic ties.
USD/CAD is heavily inverse-correlated with WTI crude oil. Rising oil typically weakens USD/CAD; falling oil strengthens it. Both currencies share strong North American economic ties.
Also called: USDCAD, Loonie
Open full pageUS Dollar vs Swiss Franc — CHF is a classic safe-haven currency.
CHF strengthens during global risk-off events (the 'safe haven' bid). Famously volatile during the SNB's 2011-2015 EUR/CHF floor experiment, which ended catastrophically in January 2015.
Also called: USDCHF, Swissie
Open full pageUS Dollar vs Japanese Yen — one of the three deepest-liquidity pairs.
USD/JPY is the standard yen pair and a key risk-on/risk-off barometer (yen tends to strengthen during global stress). BoJ's yield-curve-control policy makes it especially sensitive to US-Japan yield differentials.
Also called: USDJPY, Dollar Yen, Gopher
Open full pageGold priced in US dollars — traded on FX platforms as a 'CFD' or 'spot metal' alongside currency pairs.
Most FX brokers offer XAU/USD with leverage similar to major pairs. Gold's drivers (real yields, USD strength, inflation expectations, geopolitical risk) overlap with FX themes — many FX traders include gold in their daily watchlists.
Also called: XAUUSD, Gold, Gold/USD
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