Majors vs minors vs exotics: what changes in the numbers
The Nuqta Markets team · 28 October 2026 · 6 min read · How we write
In short
- The seven majors all include the US dollar; crosses leave it out; exotics pair a major with a smaller or emerging-market currency.
- What matters is the spread compared with the stop, not the spread alone.
- Exotics usually carry wider spreads, bigger swaps and lower leverage limits.
"Majors", "minors" and "exotics" sound like a ranking of importance. For a trader they are better read as three different sets of numbers: how wide the spread is, how far the price usually travels, how large the overnight swap can be and how much leverage a regulator allows.
The three groups
| Group | What defines it | Examples |
|---|---|---|
| Majors | US dollar against one of the six other most traded currencies | EURUSD, USDJPY, GBPUSD, USDCHF, AUDUSD, USDCAD, NZDUSD |
| Minors (crosses) | Two major currencies, no US dollar | EURGBP, EURJPY, GBPJPY, AUDNZD, EURCHF |
| Exotics | A major currency against a smaller or emerging-market currency | USDTRY, USDZAR, USDMXN, EURTRY, USDSGD |
The dollar sits in the middle because it is on one side of most of the world's currency trades; the Bank for International Settlements' 2022 survey put that share at close to nine in ten. More trading usually means tighter prices, which is the first number that changes between the groups.
Spread compared with the stop
A spread on its own says little. What matters is how much of the planned stop it eats. The table uses example spreads to show the method; real spreads vary by broker, account type and hour.
| Pair (example) | Example spread | Example stop | Spread as % of the stop |
|---|---|---|---|
| EURUSD | 1 pip | 20 pips | 5% |
| GBPJPY | 3 pips | 45 pips | 6.7% |
| USDZAR | 120 pips | 900 pips | 13.3% |
Illustrative calculation, not an expectation of results.
Exotic quotes often move hundreds of pips in a day, so the stop is wider too. The comparison only becomes fair once both are put on the same scale, which is why the spread is best measured against the stop rather than in raw pips. Remember also that a pip on USDZAR is worth far less than a pip on EURUSD, because the quote currency is the rand: the pip value calculator shows the difference for your lot.
Swap: the overnight number
Holding a position past the daily rollover earns or pays a swap based on the interest-rate gap between the two currencies, minus the broker's markup. Between majors that gap is often small. With an exotic whose central bank rate is far above the dollar's, the swap on one side can be large enough to matter over a few nights, and it can be negative on both sides once the markup is included.
Leverage limits
Regulators treat the groups differently. Under the retail rules of ESMA in the EU and the FCA in the UK, major pairs are capped at 1:30 and all other pairs at 1:20. Lower leverage means a bigger deposit for the same trade, not a different pip value; the maths is laid out in leverage ratios in numbers.
What changes when sizing
The formula does not change from one group to another: risk ÷ (stop in pips × pip value). What changes is each input. Crosses and exotics need a conversion for the pip value, the stop is usually wider and the spread should be added to it. The lot size calculator handles the conversion; the spread still has to be added by hand.
In short
Majors usually offer the tightest spreads and the simplest pip values on a dollar account. Crosses add a conversion step. Exotics often add wide spreads, larger swaps, gaps and lower leverage limits. To see where those numbers come from in a single quote, read how to read a bid/ask quote, and for the pip value itself, base and quote currency explained.
Questions people also ask
Which pairs are the forex majors?
The usual list is EURUSD, USDJPY, GBPUSD, USDCHF, AUDUSD, USDCAD and NZDUSD: the US dollar against the six other most traded currencies.
Are exotic pairs suitable for beginners?
They are harder to size: spreads can be many times wider, gaps after news are more common and overnight swaps can be large. Many courses, this one included, teach the mechanics on majors first.
Why does the pip value of EURGBP change?
EURGBP is quoted in pounds, so one pip on one lot is £10. On a dollar account that £10 is converted at the current GBPUSD rate, so its dollar value moves a little every day.
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