Ever felt overwhelmed by the sheer number of forex pairs available to trade? You’re not alone. With over 180 recognized currencies worldwide and countless possible combinations, it’s natural to wonder: how many forex pairs are there, really?
Whether you’re a forex rookie dipping your toes into the market or a seasoned trader looking to expand your watchlist, understanding the universe of currency pairs—and how to navigate them—is essential. Let’s dive deep and decode the forex pair jungle.
Understanding Forex Pairs
What Is a Forex Pair?
A forex pair is a quote of two different currencies. One is bought, and the other is sold simultaneously. For instance, when you trade EUR/USD, you’re buying euros while selling U.S. dollars.
This duality creates endless opportunities—but also confusion. Each pair tells a story of global economies in constant motion.
Base and Quote Currency Explained
Every forex pair consists of:
- Base Currency: The first currency in the pair (e.g., EUR in EUR/USD).
- Quote Currency: The second currency in the pair (e.g., USD in EUR/USD).
If EUR/USD = 1.1200, it means 1 euro equals 1.12 U.S. dollars.
How Currency Pairs Work in the Forex Market
Currency pairs move based on supply and demand, influenced by interest rates, geopolitical events, and market sentiment. Traders speculate on whether the base currency will strengthen or weaken against the quote currency.
Types of Forex Pairs
Forex pairs fall into four major categories:
Major Forex Pairs
These are the most traded and liquid pairs:
- EUR/USD – The world’s most popular pair.
- USD/JPY – Dominates Asia-Pacific trading hours.
- GBP/USD – Known as “Cable,” it’s highly volatile.
- USD/CHF – Swiss franc often acts as a safe haven.
Minor (Cross) Currency Pairs
These don’t include the U.S. dollar but are still widely traded:
- EUR/GBP – A post-Brexit battleground.
- EUR/JPY – Euro vs. Yen battles for Asian/European dominance.
- EUR/CHF – Involves two major European currencies.
Commodity Currency Pairs
Heavily influenced by commodity exports:
- AUD/USD – Sensitive to China’s demand and gold prices.
- USD/CAD – Moves with oil markets.
- NZD/USD – Dairy and agriculture-based economy.
Exotic Currency Pairs
These combine a major currency with a currency from a smaller or emerging market:
- USD/TRY – U.S. dollar vs Turkish lira.
- EUR/SEK – Euro vs Swedish krona.
- USD/THB – U.S. dollar vs Thai baht.
How Many Forex Pairs Exist in Total?
Total Number of Tradable Forex Pairs
Over 180 currencies globally can combine into more than 3,000 theoretical pairs. However, not all are practical or tradable due to low liquidity.
Number of Pairs by Broker Platforms
- Major forex brokers like IG, OANDA, or Forex.com offer between 60 to 100+ forex pairs.
- Niche brokers may offer over 150 pairs, including synthetic and exotic combinations.
Most Commonly Traded Pairs Globally
According to the Bank for International Settlements (BIS):
- EUR/USD accounts for 27% of global FX trading volume.
- Followed by USD/JPY and GBP/USD.
Why Not All Pairs Are Actively Traded
Low liquidity, wide spreads, and limited data make many exotic or rare pairs less favorable. Traders typically stick to high-volume pairs with tighter spreads.
Factors That Influence Forex Pairs
Interest Rates & Central Banks
Higher interest rates attract investment—strengthening a currency. Central banks like the Fed or ECB are major players.
Political Events & Economic Data
Elections, wars, inflation reports, and GDP data can dramatically swing currency prices.
Market Sentiment & Risk Appetite
“Risk-on” moods boost high-yield currencies like AUD or NZD. “Risk-off” sentiment favors safe havens like JPY or CHF.
Correlation Between Currency Pairs
Some pairs move together (positive correlation), while others move in opposite directions (negative correlation). E.g., EUR/USD and USD/CHF often mirror each other.
How to Choose the Best Forex Pairs to Trade
Factors to Consider When Selecting Pairs
- Volatility
- Liquidity
- News sensitivity
- Time zone overlap with your schedule
High Liquidity vs High Volatility Pairs
- High liquidity: Tight spreads, stable moves (e.g., EUR/USD).
- High volatility: Bigger profit potential—but riskier (e.g., GBP/JPY).
Forex Pairs with the Most Pips
GBP/JPY, GBP/AUD, and other volatile pairs offer the most daily pips—ideal for scalping or swing trading.
Starting With One Forex Pair: A Beginner Strategy
Many pro traders started with one pair. Master the rhythm of EUR/USD or USD/JPY before expanding.
Benefits of Trading Different Forex Pairs
Advantages of Major Pairs
- Tight spreads
- Deep liquidity
- Rich in economic data
Opportunities in Minor & Exotic Pairs
While riskier, they offer big moves and can diversify your strategy.
Diversifying Your Currency Portfolio
Mixing majors, minors, and exotics spreads risk and uncovers hidden opportunities.
Live Forex Currency Pair Rates and Trading Tools
How to Use Live Rate Feeds
Platforms like TradingView, MetaTrader, or Forex Factory display real-time prices and charting tools.
Platforms Offering Real-Time Data
- MetaTrader 4/5
- cTrader
- Thinkorswim
Forex Indices and Synthetic Pairs Explained
Forex indices (e.g., USDX) measure the value of a currency against a basket. Synthetic pairs are broker-created combinations offering unique trading opportunities.
Final Thoughts on Forex Pairs
In the dynamic world of forex, understanding how many forex pairs are there is just the beginning. The real power lies in knowing which ones to trade—and why. From majors to exotics, each pair presents a unique rhythm, story, and trading opportunity.
Whether you’re playing it safe with EUR/USD or chasing pips on USD/TRY, having a well-rounded grasp of forex pairs is your edge in this fast-moving market.
Trade smart. Stay sharp. Keep learning.
FAQ
EUR/USD tops the list—driven by the EU and U.S. economic powerhouses.
Technically yes, but most traders focus on a handful of liquid pairs for better risk management.
Yes. They come with wider spreads and are prone to sudden spikes due to low liquidity.
Start with one—master it, then gradually add others. Quality over quantity wins in forex.
