Majors usually include the most traded currencies such as USD, EUR, JPY, and GBP in combinations like EUR/USD or USD/JPY. Minors (sometimes called “crosses”) exclude USD on one side, for example EUR/GBP. Exotics pair a major with a smaller or emerging-market currency.
Liquidity and cost
More liquid pairs often have tighter spreads during liquid sessions. Exotics can have wider spreads and more gap risk, which affects both execution and pip value intuition.
Tool assumptions
Always select the exact symbol you trade when using calculators; “EURUSD” on one feed is not identical to another broker’s naming or contract.
Browse calculators from the tools hub and read the FAQ for how MyForexTool models rates.
Liquidity ladders in practice
Majors typically sit at the top of the liquidity ladder during London and New York hours; crosses can be excellent when both legs are awake; exotics often demand wider stops or smaller size because spread and gap risk dominate the experience.
When “cheaper” pairs cost more
A wide spread paid twice (entry and exit) is a real drag on short-term expectancy. Before chasing exotic stories, model round-trip friction in account currency for your typical hold time.
- Compare median spread by hour for any new symbol.
- Size down first when spread spikes persistently.
- Read minimum stop distance rules if your broker publishes them.
Building a watchlist you can afford
Most traders thrive with a small set of liquid names plus one or two specialists they truly understand. Depth beats breadth when costs bite.