Currencies are traded in pairs; in each transaction, one currency is bought while another is simultaneously sold. In the pairs, the first named currency is referred to as the base currency, while the second is known as the counter currency. The price of the currency pair represents how much of the counter currency is needed to buy one unit of the base currency. In other words, in the example below, the price refers to how many Japanese Yen it currently takes to buy 1 US Dollar.
USD/JPY
Base Currency / Counter Currency
The Majors
Many speculators believe that the best trading opportunities are with the most commonly traded (and therefore most liquid) currencies, called "the Majors." Today, more than 85% of all daily transactions involve trading of the Majors, which include the US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar, Australian Dollar, and New Zealand Dollar.
The following are collectively known as the majors:
| Currency Symbol |
Currencies |
Nickname |
 |
EUR|USD |
|
|
Euro vs. U.S. Dollar |
Euro |
 |
GBP|USD |
|
|
Sterling vs. U.S. Dollar |
Sterling, Pound, Cable |
 |
AUD|USD |
|
|
Australian Dollar vs. U.S. Dollar |
Aussie |
|
USD/JPY |
|
|
U.S. Dollar vs. Yen |
Yen |
|
USD/CHF |
 |
|
U.S. Dollar vs. Swiss Franc |
Swissie |
|
USD/CAD |
 |
|
U.S. Dollar vs. Canadian |
Loonie, The Funds |
 |
NZD/USD |
|
|
New Zealand Dollar vs. U.S. Dollar |
Kiwi |
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