Minor and Exotic Currency Pairs

Minor currency pairs, also known as cross currency pairs, do not include the US Dollar. They represent major currencies traded against each other, such as EUR/GBP (Euro/British Pound) or AUD/CAD (Australian Dollar/Canadian Dollar). Although they have lower trading volumes than major pairs, they can still provide trading opportunities for those seeking alternative investments.

Exotic currency pairs involve one major currency and a currency from an emerging or smaller economy. Examples include USD/TRY (US Dollar/Turkish Lira) or EUR/SEK (Euro/Swedish Krona). Exotics generally have wider spreads and less liquidity, which can lead to higher transaction costs and increased risk. Traders often approach them with caution and consider their specific market conditions.