What Is Major Pair? Meaning & Example
Definition
A major pair is one of the most heavily traded currency pairs, each including the US dollar. Majors usually have the tightest spreads and highest liquidity.
Related terms
A forex pair quotes the value of one currency in terms of another. The first currency is the base and the second is the quote currency.
LiquidityLiquidity describes how easily an asset can be bought or sold quickly without greatly moving its price. Highly liquid markets have many buyers and sellers and tight spreads.
SpreadThe spread is the difference between the highest price a buyer will pay (the bid) and the lowest price a seller will accept (the ask). Narrow spreads usually mean lower trading costs.
What is Major Pair?
A major pair is one of the most heavily traded currency pairs, each including the US dollar. Majors usually have the tightest spreads and highest liquidity.
Can you give an example of Major Pair?
EUR/USD and USD/JPY are examples of major pairs.