Minor Forex Pairs

Minor forex pairs refer to currency pairs that are not as heavily traded as the major pairs. These pairs typically have lower trading volumes and wider bid-ask spreads, which can make them more challenging for traders to navigate. Some examples of minor pairs include:

EUR/GBP (Euro/British Pound)

GBP/JPY (British Pound/Japanese Yen)

CHF/JPY (Swiss Franc/Japanese Yen)

EUR/CHF (Euro/Swiss Franc)

AUD/JPY (Australian Dollar/Japanese Yen)

CAD/JPY (Canadian Dollar/Japanese Yen)

Trading minor pairs can be more risky than trading major pairs because of their lower liquidity and wider spreads. However, they can also offer greater potential returns due to the increased volatility. Additionally, minor pairs can be influenced by unique economic events or political situation in the countries they represent, which can make them interesting options for traders looking for diversification.

Cross Forex Pairs

Cross forex pairs, also known as cross-currency pairs or simply crosses, refer to currency pairs that do not include the US dollar. These pairs are formed by the exchange rate between two currencies. Some examples of cross pairs include:

EUR/GBP (Euro/British Pound)

EUR/CHF (Euro/Swiss Franc)

GBP/CHF (British Pound/Swiss Franc)

AUD/NZD (Australian Dollar/New Zealand Dollar)

EUR/CAD (Euro/Canadian Dollar)

Cross pairs are not as widely traded as major and minor pairs, and as a result, they tend to have lower trading volumes and wider bid-ask spreads. However, they can be a good option for traders looking for diversification as they are not as directly influenced by the US dollar as the major and minor pairs. Additionally, cross pairs can be influenced by the economic and political situation of the countries they represent, which could provide unique trading opportunities.

Minor forex pairs and cross forex pairs are often used interchangeably, but they have slightly different meanings.

Minor forex pairs refer to forex pairs that are not as heavily traded as the major forex pairs and typically have a lower trading volume and wider bid-ask spreads.

Cross forex pairs, also known as cross rates, are forex pairs that do not include the US dollar. For example, EUR/JPY is a cross forex pair because it does not include the US dollar.

So, minor forex pairs are a subset of cross forex pairs because minor frex pairs are less traded than major forex pairs but all minor forex pairs are cross forex pairs as they don't include US dollar.