All the currencies are always quoted in pairs, thus for every transaction in the Forex market you are simultaneously purchasing one currency and selling another.
Major currencies are the most traded currencies in the FX market. They are generally sufficiently liquid to be readily convertible to the currency of other nations. Major currency is most often associated with politically stable, highly industrialized nations.
The following 8 currencies are regarded as major currencies:
USD (United State Dollar)
JPY (Japanese Yen)
CAD (Canadian Dollar)
GBP (Great Britain Pound)
CHF (Swiss Franc)
AUD (Australian Dollar)
NZD (New Zealand Dollar)
These 8 currencies are the currencies against which most other world currencies are valued. Major currency pairs refer to any pair containing one of the currencies listed above and the US Dollar, so while there are eight major currencies, there are only seven major currency pairs.
Minor currency pairs include any two of the major currencies apart from the USD.
Below is the list of some of the famous minor currency pairs traded by traders:
1) EUR/JPY (Euro-Japanese Yen)
2) EUR/GBP (Euro-British Pound)
3) EUR/CHF (Eur0-Swiss Franc)
4) CAD/JPY (Canadian Dollar-Japanese Yen)
5) AUD/JPY (Australian Dollar-Japanese Yen)
6) GBP/CHF (British Pound-Swiss Franc)
7) GBP/NZD (British Pound-New Zealand Dollar)
Exotic currencies are any currencies not mentioned already. Some like the Hong Kong Dollar (HKD) and Norwegian Krone (NOK) are fairly liquid, some like the Mexican Peso (MXN) and Thai Baht (THB) are less liquid, and others like the Malawian Kwacha (MWK) and Laos Kip (LAK) have very little liquidity.
Exotic pairs are those that include one major currency and one exotic currency.
Below is the list of some of the exotic pairs:
USD/HKD (United State Dollar-Hong Kong Dollar)
USD/SGD (United State Dollar-Singapore Dollar)
USD/MXN (United State Dollar-Mexican Peso)
USD/TRY (United State Dollar-Turkish Lira)
USD/ZAR (United State Dollar-South African Rand)