Compare seven pairs, calculate pip values across quote currencies, and unpack shared dollar exposure. Check contracts and costs instead of assuming more symbols mean diversification.
Retail forex material commonly groups EUR/USD, GBP/USD, USD/JPY, USD/CHF, AUD/USD, USD/CAD and NZD/USD as seven major pairs. This convention does not mean they are exactly the top seven in every global turnover dataset or that every account receives a low spread.
The actual product may be spot conversion, margined rolling forex, a CFD or a future. Similar names do not make contracts, quotes and settlement identical. Establish the product before asking which pair suits you. BIS research on global FX markets provides structural context, not a guarantee of retail execution quality.
This page uses the familiar platform convention: base currency first, quote currency second. EUR/USD at 1.1000 means USD1.10 per euro; USD/JPY at 150.00 means JPY150 per dollar. A higher number means the first currency strengthens relative to the second. Not every rising dollar pair means a stronger dollar.
Buying EUR/USD creates long-euro exposure relative to USD; buying USD/JPY creates long-dollar exposure relative to JPY. For a CFD, this describes price exposure, not a promise to deliver both cash currencies into your bank account. Futures can quote differently; see CME's quote-convention lesson.
| Pair | Quote for one base unit | Pip convention used here | Information categories, not directional forecasts |
|---|---|---|---|
| EUR/USD | Dollars per euro | USD0.0001 | Euro-area/US policy, inflation and growth |
| GBP/USD | Dollars per pound | USD0.0001 | UK/US policy, wages and growth |
| USD/JPY | Yen per dollar | JPY0.01 | US/Japan policy, rate differences and official announcements |
| USD/CHF | Francs per dollar | CHF0.0001 | US/Swiss policy, inflation and risk events |
| AUD/USD | Dollars per Australian dollar | USD0.0001 | Australia/US policy and trade data |
| USD/CAD | Canadian dollars per US dollar | CAD0.0001 | US/Canadian policy, trade and energy data |
| NZD/USD | Dollars per New Zealand dollar | USD0.0001 | New Zealand/US policy and trade data |
The final quote digit can be smaller than a pip. A five-decimal EUR/USD increment of 0.00001 is commonly a tenth of a pip. Platform “point”, “tick” and “pip” need not mean the same thing. Check contract parameters; these conventions cannot simply be transferred to gold, indices or inversely quoted futures.
For the linear contracts assumed here, quote-currency amount per pip equals base quantity multiplied by pip size. All rates and quantities below are fictional teaching inputs, not current quotes. Commissions, financing and conversion markups are excluded.
| Assumed position | Quote-currency value | Assumed conversion | Approximate USD value |
|---|---|---|---|
| EUR/USD, EUR10,000 | 10,000 × 0.0001 = USD1 | None | USD1 per pip |
| USD/JPY, USD10,000 | 10,000 × 0.01 = JPY100 | At USD/JPY150.00:100 ÷ 150 | USD0.6667 per pip |
| USD/CHF, USD10,000 | 10,000 × 0.0001 = CHF1 | At USD/CHF0.9000:1 ÷ 0.9 | USD1.1111 per pip |
“0.1 lot always means one dollar per pip” is therefore wrong. A particular result requires additional assumptions, including a 100,000-base-unit lot, a 0.1-lot quantity and USD as quote currency. Other contract sizes and account currencies require recalculation.
In the USD/JPY example, 20 pips equals JPY2,000. Conversion at 150 gives approximately USD13.33; at 140 it gives USD14.29. These are alternative conversion assumptions, not two definite settlement outcomes for one order. Check the actual timing, conversion side and fees.
Suppose you buy EUR10,000 at 1.10, GBP10,000 at 1.25 and AUD10,000 at 0.65 against USD. At those entry prices, the short-USD sides are approximately USD11,000, USD12,500 and USD6,500, totalling USD30,000.
Three different symbols can therefore share a dollar direction rather than provide broad diversification. For CFDs, this is a decomposition of notional price exposure, not proof of borrowing USD30,000. Currency changes, correlations and contract terms still differ. That sum is not automatically maximum loss or required margin.
Opposite trades also need not perfectly hedge. Amounts, tenors, quote bases and costs can mismatch. Aggregate by currency and test explicit scenarios instead of counting symbols as independent risks.
Do not turn a London/New York overlap, an Asian session or a “safe-haven currency” label into a fixed law. Daylight saving, holidays, unexpected events, providers and account types can change conditions. A JPY or CHF label does not promise appreciation in every risk event, and oil alone cannot determine USD/CAD direction.
Compare the same product, size and order type. Record time zone, bid/ask, spread, commission, rejections and slippage. Comparing one provider's “from zero” advertisement against another account's average costs is not like-for-like. See the cost calculations and calendar checks.
Identify the contract and regulated entity; check quote direction, contract size and minimum quantity; calculate pip value in the account currency and common-currency exposure; then decide whether adequate records explain costs and order rules for the relevant session. Leave unresolved fields blank rather than filling them with “major pair”.
If minimum quantity exceeds the prior risk budget, do not raise the budget just to fit the minimum. Paper records or a demo can help explain mechanics, but simulated execution does not establish real liquidity.
Does a familiar EUR/USD symbol make profit easier? Trading activity is not personal profitability, and costs are not the only risk.
Does USD/JPY 150 to 151 mean the yen rose? Under this convention, a dollar buys more yen: the dollar strengthened relative to the yen.
Why do equal 20-pip moves produce different results? Quantity, pip definition, quote currency, account conversion and fees can differ.
Should I hold all seven? This is not a portfolio recommendation. More symbols do not necessarily diversify a shared currency direction.