The 7 most commonly traded minor currency pairs are EUR/GBP, EUR/AUD, EUR/CHF, EUR/JPY, GBP/JPY, GBP/CHF, and AUD/JPY. These pairs don’t include the US dollar but still involve major global currencies, making them popular among traders looking for diversification and different market opportunities.
Key Takeaways
- Minor pairs do not include the US dollar
- They are also called cross-currency pairs
- They involve major currencies like EUR, GBP, JPY, and AUD
- They often have higher spreads than major pairs
- They can offer strong trading opportunities due to volatility
Learn how cross pairs move, and now trade them with real-time data and fast execution.
What Are Minor Currency Pairs?
Minor currency pairs, also known as cross pairs, are forex pairs that do not include the US dollar. Instead of trading currencies against USD, these pairs compare other major economies directly with each other.
For example, instead of trading EUR/USD, a trader might trade EUR/GBP. This allows traders to focus on the relationship between two non-US economies.
Minor pairs are important because they give traders more flexibility. They can find opportunities that may not be visible in major pairs. However, they can also be slightly more complex because you need to understand two economies at the same time.
The 7 Most Common Minor Currency Pairs
The forex market has many cross pairs, but these seven are the most widely traded:
| Minor Pair | Currencies Involved | Region Focus | Key Driver |
| EUR/GBP | Euro vs British Pound | Europe/UK | Economic growth differences |
| EUR/AUD | Euro vs Australian Dollar | Europe/Australia | Commodity prices |
| EUR/CHF | Euro vs Swiss Franc | Europe/Switzerland | Safe-haven demand |
| EUR/JPY | Euro vs Japanese Yen | Europe/Japan | Risk sentiment |
| GBP/JPY | British Pound vs Japanese Yen | UK/Japan | High volatility trends |
| GBP/CHF | British Pound vs Swiss Franc | UK/Switzerland | Stability vs growth |
| AUD/JPY | Australian Dollar vs Japanese Yen | Australia/Japan | Risk-on/risk-off markets |
These pairs are popular because they combine strong economies and active trading volumes. Minor pairs generally have lower liquidity than major pairs; they still offer good trading conditions on platforms like Defcofx.
Why Traders Use Minor Currency Pairs
Many traders move beyond major pairs because minor pairs offer different types of opportunities. Since they are not directly tied to the US dollar, their movements can sometimes be more independent and driven by regional factors.
For example, if there is strong economic news in the UK but nothing major happening in the US, GBP-based minor pairs like GBP/JPY or GBP/CHF may show clearer trends than GBP/USD.
Another reason traders use minor pairs is diversification. Instead of focusing only on USD-based trades, traders can spread their risk across multiple currency combinations. This can help reduce overexposure to one economy.
However, trading minor pairs requires a deeper understanding of global markets. You need to follow news from both countries involved, which can make analysis slightly more advanced.
Trade beyond USD pairs with tight spreads, real-time charts, and smooth execution.
How Minor Pairs Move in the Market
Minor currency pairs are influenced by the same factors as major pairs, but without direct USD involvement. Their movement depends on economic data, interest rates, political stability, and market sentiment from both countries in the pair.
For example, EUR/JPY often reacts strongly to global risk sentiment. When markets are stable, traders may buy EUR/JPY. During uncertainty, they may move into safer currencies like the Japanese yen, causing the pair to drop.
Similarly, AUD/JPY is heavily influenced by commodity prices and global growth expectations. This makes it a popular pair for traders who follow macroeconomic trends.
Understanding these drivers helps traders anticipate movements instead of reacting late to the market.
Minor vs Major Currency Pairs
To fully understand minor pairs, it helps to compare them with major pairs:
| Feature | Major Pairs | Minor Pairs |
| Includes USD | Yes | No |
| Liquidity | Very high | Moderate |
| Spreads | Lower | Slightly higher |
| Volatility | Moderate | Can be higher |
| Complexity | Easier | More complex |
This comparison shows that minor pairs can offer more movement, but they also require more skill and awareness.
When Should You Trade Minor Pairs?
Timing is very important when trading minor pairs. These pairs are most active when both markets involved are open.
For example, EUR/GBP is more active during the European session, while AUD/JPY becomes more active during the Asian session.
Trading during high liquidity periods helps reduce spreads and improves execution. This is especially important when using a platform like Defcofx, where fast execution and tight spreads can make a noticeable difference in performance.
Want to explore more than just USD pairs? Start trading minor pairs on the Defcofx platform that gives you real-time data, smooth execution, and the flexibility to diversify your strategy.
Open a Live Trading AccountAre Minor Currency Pairs Worth Trading?
Minor currency pairs are an important part of the forex market. They offer unique opportunities that are not always visible in major pairs. While they may come with slightly higher costs and complexity, they can be very rewarding for traders who understand how they work.
The key is to approach them with proper knowledge and strategy. When combined with the right tools and platform, minor pairs can become a valuable part of your trading portfolio.
Open a Live Trading AccountDiversify your trading strategy with minor currency pairs and real market access.
FAQs
What are minor currency pairs in forex?
Minor currency pairs are forex pairs that do not include the US dollar. They involve major currencies like the euro, pound, yen, and Australian dollar. These pairs are also called cross pairs and are commonly used by traders looking for alternative opportunities.
Why are minor pairs called cross pairs?
They are called cross pairs because they “cross out” the US dollar and allow direct comparison between two other currencies. This naming comes from the historical method of calculating exchange rates without involving USD directly.
Are minor currency pairs good for beginners?
Minor pairs can be traded by beginners, but they are slightly more complex than major pairs. Beginners should first understand how major pairs work before moving to minor pairs, as they require knowledge of multiple economies and market drivers.
Which minor pair is the most volatile?
Pairs like GBP/JPY are known for high volatility because they involve currencies with strong movement patterns. This can create more trading opportunities but also increases risk, so proper risk management is essential.
Do minor pairs have higher spreads?
Yes, minor pairs usually have higher spreads compared to major pairs. This is because they are slightly less liquid. Traders should consider this when planning trades, especially for short-term strategies.
When is the best time to trade minor pairs?
The best time to trade minor pairs is when both markets involved are active. For example, EUR-based pairs are best traded during the European session, while AUD or JPY pairs are more active during the Asian session.
Can you make money trading minor pairs?
Yes, traders can make money trading minor pairs if they understand how they move and apply proper strategies. Like any trading, success depends on knowledge, discipline, and risk management rather than the type of pair alone.
Are minor pairs better than major pairs?
Minor pairs are not necessarily better, but they offer different opportunities. Major pairs are more stable and easier to trade, while minor pairs can provide more volatility and diversification for experienced traders.