Introduction | Currency Pairs: The Foundation of Forex Trading

If you’re just starting in Forex, understanding currency pairs is the first essential step.
Every Forex trade involves two currencies — you’re buying one and selling the other. In this comprehensive guide by MFA Signals, we’ll explain:
• What currency pairs are
• The different types (major, minor, exotic)
• How to trade them
• What influences their price
• And how MFA Signals can help you trade them with confidence

What Is a Currency Pair?

A currency pair shows the value of one currency relative to another.

Example:
EUR/USD = 1.1000
Means 1 euro equals 1.10 US dollars.

Two parts:
• First currency = Base currency
• Second currency = Quote currency

You’re always buying the base and selling the quote — or vice versa.

Types of Currency Pairs

1. Major Pairs

Always include the USD and are the most liquid:
• EUR/USD
• GBP/USD
• USD/JPY
• USD/CHF

2. Minor Pairs

Do not include the USD:
• EUR/GBP
• EUR/AUD
• GBP/JPY

3. Exotic Pairs

Include one emerging-market currency:
• USD/TRY
• EUR/SEK
• USD/ZAR

Note: Exotic pairs have high spreads and irregular volatility — not ideal for beginners.

How to Trade Currency Pairs

In every trade, you’re buying one currency and selling another at the same time.

Buy Example:
Expecting the euro to strengthen? Place a Buy order on EUR/USD.

Sell Example:
Think USD will gain? Place a Sell order on EUR/USD.

Reminder: You don’t own the currencies physically — you trade the price movement.

What Affects Currency Pair Prices?
1. Interest rate decisions
2. Inflation data (e.g., CPI)
3. Central bank policy & monetary statements
4. Geopolitical events (war, elections, global risk)
5. Global risk sentiment (stocks, gold, dollar index)

Choosing the Right Pairs for Your Style
 

How MFA Signals Helps with Currency Pair Trades

At MFA Signals, we:
• Analyze high-probability pairs every day
• Focus on volatility, volume, and clean market structure
• Send signals with:
• Entry point
• Stop loss
• Take profit
• Technical chart
• Timing suggestion (based on session activity)

This gives traders — especially beginners — the precision they need.

Conclusion

• Currency pairs are the core of Forex
• Trading success depends on smart pair selection and timing
• Beginners should focus on liquid major pairs
• Use MFA Signals to get professional guidance and accurate setups

FAQs

Are currency pairs the only thing I can trade in Forex?
No — you can also trade gold, oil, indices, and even crypto, but pairs are most common.

What pairs are best for scalping?
EUR/USD and GBP/USD — tight spreads, high liquidity.