Major currency pairs consist of the most frequently traded currencies globally. Because they have massive liquidity, you’re able to trade them virtually always.
When a currency pair doesn’t include the US dollar, it’s called a minor currency pair or a cross-currency pair. The most widely traded minor pairs consist of the euro, yen or British pound.
Exotic currency pair includes a major currency and the currency of a developing economy (such as Brazil or South Africa). You won’t find exotic pairs as often as you’ll find major or minor pairs, which means the spreads can be higher when trading them.
In the forex market, you deal with two currencies at a time. For example, when you’re selling US dollars, you need to know what you’re selling it for. Let’s say you’re selling dollars and getting euros in return. In that case, you’re trading the USD/EUR currency pair and looks at fundamental data and technical indicators