Day 10: Major Currency Pairs (Majors) — The Forex Battlefield for Beginners
When beginners trade forex, why are they always advised to start with major currency pairs?
The answer is three words: liquidity.
The four major currency pairs (Majors) in the forex market are:
EUR/USD, USD/JPY, GBP/USD, USD/CHF
What do they have in common?
1. Highest liquidity — most buyers and sellers, smallest spreads
2. Most stable quotes — less slippage, high execution quality
3. Most available information — textbooks, indicators, and strategies are built around them
What about exotic currency pairs?
Their liquidity is lower, spreads are typically 2–5 times those of majors, and quotes may even jump.
They’re not beginner-friendly: with the same kind of judgment, the costs are higher and execution is worse.
There’s a similar mapping in the crypto world:
BTC/USDT is the crypto equivalent of EUR/USD
— the largest market cap, best liquidity, and most widely recognized pricing.
Lower-cap coins are like exotic pairs
— bigger slippage, higher volatility, and it’s easier for beginners to get burned.
Beginner path:
First, practice direction and risk control within major instruments
Only after you’re confident, then consider other instruments
Markets are risky; trade cautiously.
When beginners trade forex, why are they always advised to start with major currency pairs?
The answer is three words: liquidity.
The four major currency pairs (Majors) in the forex market are:
EUR/USD, USD/JPY, GBP/USD, USD/CHF
What do they have in common?
1. Highest liquidity — most buyers and sellers, smallest spreads
2. Most stable quotes — less slippage, high execution quality
3. Most available information — textbooks, indicators, and strategies are built around them
What about exotic currency pairs?
Their liquidity is lower, spreads are typically 2–5 times those of majors, and quotes may even jump.
They’re not beginner-friendly: with the same kind of judgment, the costs are higher and execution is worse.
There’s a similar mapping in the crypto world:
BTC/USDT is the crypto equivalent of EUR/USD
— the largest market cap, best liquidity, and most widely recognized pricing.
Lower-cap coins are like exotic pairs
— bigger slippage, higher volatility, and it’s easier for beginners to get burned.
Beginner path:
First, practice direction and risk control within major instruments
Only after you’re confident, then consider other instruments
Markets are risky; trade cautiously.
