The forex market typically involves trading currency pairs, which is the simultaneous purchase of one currency and sale of another. There are three main types of currency pairs:

• Basic currency pairs, minor currency pairs, and exotic currency pairs. •Basic currency pairs are the most popular pairs. They are also the most liquid ones. Normally, one of the currencies in a basic currency pair is the US dollar. An example of a basic currency pair is EUR/USD.
• Also known as cross-currency pairs, minor currency pairs do not include the US dollar, but they are still composed of the major currencies, such as the euro and the Japanese yen. An example of a basic currency pair is EUR/CHF.
• Exotic currency pairs usually contain one of the major currencies on one side of the pair and the currency of a developing/emerging economy on the other (e.g., USD/HKD). Although they tend to be less popular with traders, they are still offered by MedFX