How do currency pairs work?
When you trade in forex, each transaction will involve the simultaneous buying of one currency and selling of another in pairs. These currency pairs quote the value of one currency in relation to another and will be named after the two currencies involved. The first currency quoted is the base or transaction currency, while the second will be the counter or quote currency.
Example: AUD/USD 0.69853 means 1 Australian dollar can be exchanged for approximately 0.7 US dollars.
Major forex pairs
OANDA’s trading platform gives our clients access to all major forex pairs five days a week, 24 hours a day. Majors are the most traded forex pairs in the world, all involving the US dollar. According to the Bank for International Settlements, EUR/USD is the most traded currency pair on the forex market – comprising 23.1% of average daily trades in April 2016.
Cross currency pairs
In addition to all major forex pairs, OANDA’s trading platform also provides our clients with the ability to trade in cross currency pairs. The main difference between these and our major pairs is that cross pairs do not involve the US dollar.
While major pairs are more popular for traders, cross pairs can also offer attractive risk/reward opportunities to those familiar with the forex market.
OANDA has partnered with Paxos, so you can spot trade cryptocurrencies on Paxos's itBit exchange through our platform. You’ll enjoy competitive commissions and spreads on a range of popular cryptos, with two-way streaming prices:
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All digital asset transactions occur on the Paxos Trust Company exchange. Any positions in digital assets are custodied solely with Paxos and held in an account in your name outside of OANDA Corporation. Digital assets held with Paxos are not protected by SIPC. Paxos is not an NFA member and is not subject to the NFA’s regulatory oversight and examinations.