Minor Currency Pair Definition | CFI LB

minor currency pair

A minor currency pair is a pair of currencies from large, strong economies that do not include the US Dollar. The most popular and most traded minor currency pairs include the Pound, the Euro, and the Yen because, besides the US Dollar, these are the three most traded currencies.

 

The euro (EUR) is the second most held reserve currency, and the second most traded in the world. It accounts for up to 31% of the daily trading volume in the market. It has maintained the status of being a major reserve currency since its introduction in 1999. An example of a minor currency pair with the euro is EUR/GBP.

 

The Japanese yen (JPY) is the fourth most held reserve currency, and the third most traded in the forex market, accounting for almost 22% of the daily trading volume. The JPY is traded as a reserve currency because it remains stable during turbulent market times. An example of a minor pair with the Yen is EUR/JPY.

 

The great British Pound (GBP) is the third most held reserve currency, and the fourth most traded in the forex market, accounting for approximately 13% of daily trade volume. An example of a minor currency pair with the Pound would be EUR/GBP.

 

The most-traded minor currency pairs that you can trade with CFI include:

 

  • Euro/British Pound (EUR/GBP)
  • British Pound/Canadian Dollar (GBP/CAD)
  • Swiss Franc/Japanese Yen (CHF/JPY)
  • Euro/Australian Dollar (EUR/AUD)
  • New Zealand Dollar/Japanese Yen (NZD/JPY)
  • British Pound/Japanese Yen (GBP/JPY)

 

key takeaways:

 

  • Minor currency pairs have a smaller market share compared to major pairs
  • They have lower market liquidity compared to major pairs
  • They have wider forex spreads compared to major pairs
CFI Financial Group is an award winning global financial markets provider with over 23 years of experience and regulated entities in several jurisdictions, focused on offering impeccable execution and trading conditions including very low spreads, professional services, dedicated support and powerful tools.
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CFI provides execution-only services and does not provide any investment advice. To make an investment decision, you cannot rely on the content of this website, or on any information, opinion, report or other materials (“Information”) you receive from CFI, or its representatives. Such Information is general and does not consider your objectives and your financial situation, thus they shall not be considered in any way as an express or implied promise nor a guarantee of any profit or limit of loss. CFI shall not bear any liability in case you used or relied on such Information. Please ensure that you make your own research and seek independent advice if necessary.

Forex and CFDs are leveraged products that incur a high level of risk. A small adverse market movement may expose the client to lose the entire invested capital. The majority of retail client accounts lose money when trading in CFDs. Please be aware of trading risks and that you could sustain a loss exceeding your deposited funds, even if a stop loss is used.

CFI Lebanon is regulated by the Banque du Liban and the Capital Markets Authority

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