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Currency Pairs and Quoting

Majors, minors and exotics, and how to read a quote.

Currency Pairs and Quoting illustration

Pairs are grouped into majors, minors (crosses) and exotics. Majors pair the US dollar with a major currency (EUR/USD, GBP/USD, USD/JPY). Minors do not include the dollar (EUR/GBP, EUR/JPY). Exotics pair a major with an emerging-market currency (USD/TRY, USD/ZAR).

A quote like EUR/USD = 1.0800 means one euro buys 1.0800 US dollars. The bid is where you sell, the ask is where you buy; the difference is the spread.

Majors have the tightest spreads and deepest liquidity, which makes them the most common choice for prop-firm evaluations.

Because spreads and liquidity vary, a prop firm account will usually state which pairs it allows and any restrictions. Read those rules before you trade.

Stick to pairs you understand. The evaluation is about consistency and risk control, not about trading the widest range of instruments.

Takeaways

  • Majors pair the USD with a major currency; minors (crosses) do not; exotics include emerging currencies.
  • The ask minus the bid is the spread; majors have the tightest spreads.
  • Read the pair restrictions on a prop account before you trade.

Self-check

Which is a minor (cross) pair?

EUR/GBP - a cross that does not include the US dollar.

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