What is the word parity that we often encounter when investing in Forex markets? What do the concepts of major, minor and exotic parity refer to?

Currency PairsCurrency pair refers to the exchange rate between the currencies of two countries making the purchasing power of both currencies substantially equal.

The forex market, which can reach a trading volume of 5.5 trillion dollars a day on a global scale, attracts investors with the leverage feature that provides the advantage of high volume transactions with low collateral.

With Fiber Markets in this huge market, you can trade Major Parities, Minor Parities and Exotic Pairs.

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Major Pairs

Major Pairs

The major pairs are considered by many to drive the global forex market and are the most heavily traded.The most traded parity in Forex markets is EUR / USD.

Major Pairs; EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY, USD/CHF, USD/CAD are among the examples to major pairs.

Minor Pairs

Minor Pairs

A minor currency will always be traded with a major currency. In this case, the currency pair formed by a major and a minor currency is called the minor parity.

The most widely traded minor pairs consist of the euro, yen or British pound. The minor currency pairs are also formed by New Zealand Dollar (NZD), South African Republic Rand (ZAR), Singapore Dollar (SGD). USD / NZD, USD / HKD, USD / SGD, USD / ZAR, GBP / CAD, USD / HKD are examples of this pair type.

Exotic Pairs

Exotic Pairs

Exotic parity is a term generally used for currency pairs traded by traders in the countries where it is used. Exotic pairs have high volatility. The Mexican Peso, South African Rand, Russian Ruble, Indian Rupee, South Korean Won, Hong Kong Dollar are some examples for exotic currency pairs.