How the market is structured

Currencies, pairs and their nicknames

4 min

Every currency has a three-letter ISO code: USD (US dollar), EUR (euro), JPY (Japanese yen), GBP (British pound), BRL (Brazilian real), and so on.

Reading a pair

A pair is written BASE/QUOTE, e.g. EUR/USD. The price tells you how much of the quote currency one unit of the base currency is worth. EUR/USD at 1.0850 means €1 = US$1.0850.

  • Buying the pair = buying the base, selling the quote.
  • Selling the pair = selling the base, buying the quote.

The three groups of pairs

  • Majors — the most traded pairs, all involving the US dollar: EUR/USD, USD/JPY, GBP/USD, USD/CHF, AUD/USD, USD/CAD, NZD/USD. They have the tightest spreads and deepest liquidity.
  • Minors (crosses) — pairs without the US dollar, e.g. EUR/GBP, EUR/JPY, GBP/JPY.
  • Exotics — a major currency against a smaller or emerging-market one, e.g. USD/BRL, USD/TRY, USD/ZAR. Wider spreads, larger swings.

Nicknames

Traders use shorthand you will hear constantly:

  • Cable = GBP/USD (named after the transatlantic telegraph cable).
  • Fiber = EUR/USD.
  • Loonie = USD/CAD.
  • Aussie = AUD/USD, Kiwi = NZD/USD, Swissy = USD/CHF.
  • Gopher = USD/JPY.

Knowing the nicknames helps you read market commentary fluently.

Finished reading?
PreviousCentralized vs decentralized marketsNext Sessions, hours and the best times to trade
Risk disclaimer

This content is for educational and informational purposes only and is not investment, financial, tax or legal advice. Trading and investing carry risk, including the possible loss of capital. Any performance shown by third-party tools is hypothetical and not a promise of future results. Do your own research and consider professional advice before making any decision.