Reading A Forex Quote
The currency market is also referred to as the foreign exchange market, or forex. Each asset is sectioned off in a series of forex pairs, with some of the most popular examples seen in the EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CAD, and USD/CHF. There are literally thousands of different forex pairs that spread betters are able to trade, but the majority of positions are taken these majors (roughly 85%). The higher liquidity levels associated with these pairs means they tend to encounter less volatility when compared to the more exotic currencies.
Currency Crosses and Exotic Pairs
Currency crosses do not contain the US Dollar, and instead match two of the other majors against one another. Common examples here include EUR/CHF or AUD/NZD. Exotic pairs are those that combine one of the major currencies and an emerging markets currency. Examples here include choices like USD/SGD and the EUR/ZAR, which pair a major with the Singapore Dollar and the South African Rand. This is by no means an exhaustive list of all the currency choices available but this is the way currency pairs are categorized in active spread betting.