Minor pairs

Minor pairs consist of two major currencies, neither of which is the US Dollar. Examples include EUR/JPY, GBP/AUD, or CAD/CHF. These pairs are typically less traded globally than major pairs, leading to differences in market behavior. Their liquidity is lower compared to pairs involving the USD, which can influence execution quality and price stability during trading sessions.

For retail traders, minor pairs often exhibit wider spreads compared to major pairs due to lower liquidity. A wider spread directly increases transaction costs, as the difference between bid and ask prices is larger. This can make strategies like scalping less viable. Volatility can also be higher or lower depending on the specific pair and market conditions, potentially affecting risk management and position sizing.