Minor currency pairs — often called crosses — are simply forex pairs that do not include the US dollar. They pair two currencies that are both widely traded but neither is USD. For a retail trader this distinction matters because it affects liquidity, how the pair reacts to news, typical spreads, and the kinds of trading opportunities you’ll see. Understanding minors helps you widen your trading universe beyond the major USD pairs while keeping an eye on the different risks and behaviours they bring.
Definition and where minors sit in the market
In foreign exchange every price quote shows a base currency and a quote currency. Major pairs always include the US dollar on one side (for example EUR/USD or USD/JPY). Minor pairs remove the dollar from the equation and pair two other liquid currencies together: euro vs pound (EUR/GBP), pound vs yen (GBP/JPY), euro vs yen (EUR/JPY), and so on. Because they combine two active currencies, minors are still traded a lot, but generally they trade with less volume than majors and behave in ways that reflect the economic relationship between the two countries in the pair.
Minors are not the same as exotics. Exotics include a major currency paired with one from a smaller or emerging economy and typically show much wider spreads and thinner liquidity. Minor pairs sit between the majors and exotics in terms of liquidity and trading cost.
Common examples and what they represent
Traders encounter a set of commonly traded minor pairs; these are useful to know because each tends to have identifiable drivers and patterns. Typical examples include EUR/GBP, EUR/JPY, GBP/JPY, EUR/AUD, AUD/JPY and CHF/JPY. Each pair reflects a different regional linkage: EUR/GBP often moves on European political and trade news, AUD/JPY reacts to commodity prices and risk appetite, and CHF/JPY may act as a barometer for safe-haven flows between Switzerland and Japan.
Here are some familiar minor pairs you will see on most trading platforms:
- EUR/GBP, EUR/JPY, GBP/JPY, EUR/AUD, AUD/JPY, CHF/JPY
How minor pairs differ from major pairs
Minor pairs differ from majors in several practical ways that matter to traders. Liquidity is usually lower than in major USD pairs because a large portion of global FX volume involves the dollar. Lower liquidity often translates into wider quoted spreads from your broker and the potential for larger slippage on market orders during volatile moments.
Volatility patterns can also be different. Some minors show more erratic intraday moves because fewer participants are active and order books are thinner; others are steadier because they are driven by slow-moving regional fundamentals. News sensitivity shifts too: majors will often react sharply to global macro headlines that include the US, whereas minors may react more to region-specific releases or commodity prices. Finally, correlations shift: a trade in EUR/GBP might offer diversification from a USD-centred portfolio because it does not move in lockstep with dollar-based pairs.
Why traders include minors in their strategies
Traders add minor pairs to diversify exposure and to find opportunities that majors might not present. Because minors are less crowded, technical breakouts or regional developments can create tradable trends that arrive earlier or more cleanly than in major pairs. For example, a sudden change in Bank of Japan policy could push JPY crosses like GBP/JPY and EUR/JPY substantially even if USD/JPY is choppy.
Minors can also work well for specific strategies. Swing traders and position traders often prefer minors where clearer multi-day trends form around central-bank differences or commodity cycles. Short-term traders sometimes exploit intraday volatility in pairs like GBP/JPY, where rapid moves create scalping or breakout opportunities—if they manage execution and costs carefully.
Practical trading considerations for minor pairs
When you move from majors to minors, adjust several practical items of your plan. First, check the spread and typical daily range before you trade; a pair with a wider spread needs a larger move to cover costs. Use limit orders when possible to reduce slippage and consider smaller position sizes if liquidity is thin. Time your trades around the most active sessions for the currencies involved: EUR/GBP is busiest during the London session, AUD/JPY often moves more at the Tokyo/London overlap or during commodity-related news.
Analysis blends both fundamentals and technicals. For fundamentals, focus on the specific drivers for each currency: commodity prices for AUD and CAD, risk sentiment for JPY and CHF, and regional growth or political news for EUR and GBP. For technicals, multi-timeframe confirmation (for example, a daily trend plus a 4‑hour pullback into support) can help filter noisy moves that are more common in less-liquid pairs.
Before risking real money, practice on a demo account to learn how a particular minor pair behaves in different sessions and under news events. Confirm your broker reliably offers the pair with transparent spreads and execution; not every broker lists the same cross rates or has the same liquidity providers.
A simple, illustrative scenario
Imagine you monitor EUR/JPY and notice a clear uptrend on the daily chart while the 4‑hour chart pulls back to a previous resistance-turned-support zone. At the same time, European economic figures are holding steady and Japanese data is weak. A trader might plan an entry on a 4‑hour confirmation candle, place a stop below the support zone, and target a reward-to-risk consistent with their plan. In this example, the trade hypothesis combines regional fundamentals and price structure rather than relying on a US data release. This kind of approach — matching pair-specific drivers with chart structure and strict risk controls — is a common way traders approach minor pairs.
Risks and caveats
Trading minor currency pairs still carries the same core risks as trading any leveraged instrument, plus some additional caveats. Lower liquidity can mean wider spreads and larger slippage during volatile events, and thin order books can produce sharp gaps at session open or after unexpected news. Political developments, central bank surprises, and commodity shocks can move minor pairs aggressively and sometimes without the damping effect a liquid USD pair would show. Execution quality and broker choice matter more for minors; some brokers do not offer certain crosses or provide wider spreads for them. Always use position sizing and protective stops that match your risk tolerance, and remember this article is educational — it is not personalised trading advice. Trading involves substantial risk of loss and is not suitable for everyone.
Key takeaways
- Minor pairs are forex pairs that do not include the US dollar; they pair two other major currencies and sit between majors and exotics in liquidity and cost.
- They offer diversification and unique opportunities tied to regional fundamentals, but typically have wider spreads and can be more sensitive to local news and thin liquidity.
- Trade minors with careful position sizing, session awareness, and a blend of technical and fundamental analysis; demo testing and good broker selection matter.
- Trading carries risk; this is educational information, not personalised advice.
References
- https://www.jetonbank.com/blog/fx/what-are-minor-currency-pairs-in-forex
- https://www.axi.com/int/blog/education/forex/exotic-currency-pairs
- https://www.currencycloud.com/company/resources/an-introduction-to-currency-pairs/
- https://tastytrade.com/learn/trading-products/forex/available-currency-pairs/
- https://www.tradingview.com/markets/currencies/rates-minor/
- https://b2broker.com/news/what-are-forex-majors-and-minors-and-how-to-find-the-best-trading-pair/
- https://www.tradu.com/my/guide/forex/minor-currency-pairs/
- https://www.investopedia.com/terms/c/currencypair.asp