Minor Currency Pairs
Currency pairs traded without the U.S. dollar
Definition
Minor currency pairs (also called cross-currency pairs) are forex pairs that do not include the U.S. dollar. They involve two of the other major currencies such as EUR, GBP, JPY, CHF, AUD, CAD, or NZD trading against each other. Examples include EUR/GBP, GBP/JPY, and AUD/JPY. Minor pairs typically have wider spreads and lower liquidity than major pairs, making them slightly more expensive to trade.
Example
EUR/GBP is a minor currency pair representing euros against British pounds. A trader expecting the Bank of England to raise rates faster than the ECB would sell EUR/GBP (sell euros, buy pounds). The pair typically has a wider spread than EUR/USD because market depth is lower — fewer participants trade EUR/GBP than EUR/USD at any given moment.
Related Terms
Frequently Asked Question
What are minor currency pairs?
Minor currency pairs are forex pairs that exclude the U.S. dollar, such as EUR/GBP or GBP/JPY. They have less liquidity and wider spreads than major pairs but allow traders to express views between two non-USD currencies.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.