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There are products more than 100, which you can transact in forex market. Every product has various feature such as; transaction time, terms, levarage ratio. Learning what these products are helps to take the opportunities for opening position. So our winnings might increase. We need to know major, minor and exotic to open a transaction in parities. Now, we will examine what these terms mean.

Parity:

Products, which are transacted in forex, are formed of currency pairs. Meaning of parity as general meaning is currency pair, which measures values of currency of two countries according to each other.

While examianing value of parities according to each other, reverse currency and base currency are taken into consideration, and price movements are construed according to that.

Major Parity:

Major parity has the highest transaction size, and it is formed of liquid currency pair in forex market. There are seven major parities all over the world. EURUSD is the most used parity both our country and the world.

EURUSD measures value of Euro against the USD. Base currency is Euro, and reverse currency is USD.

Euro area and data and important dialogs in America affect on value of parity.

We can say that currency ,which is important for markets, is frequently preferred to open transaction in terms of economy of country.

The most preferred major parities ;

EUR/ USD ( Euro, United States Dollar Parity)

GPB/USD ( Pound, United States Dollar Parity)

USD/JPY ( United States Dollar  Parity, Yen Parity)

USD/CHF ( United States Dollar Parity, Swiss Franc Parity)

AUD/USD ( Australian Dollar, United States Parity )

USD/CAD ( United States Dollar, Canadian Dollar )

NZD/USD ( New Zealand Dollar, United States Dollar Parity )

Advantages of transact in major parities are open to transaction for five days 24 hours in weekday because of excess liquidity in markets except from exceptional circumstances. Also, it can be said that macroeconomics datas are followed more easily because major parities are formed of currency of countries which are mostly followed.

Minor Parities:

Minor parities are used less than major parities, and contain currency of major parities.

For example, parities formed of New Zealand Dollar, Republic of South African Ran, Singapore Dollar; USD/NZD, USD/HKD, USD/SGD, USD/ZAR, GBP/CAD, USD/HKD.

These parities are preferred by local traders. Especially, parities, which is in USD, are transacted more.

Exotic Parities:

Exotic parities are used less in the markets except from major and minor parities. Exotic parities are formed of currency which local traders prefer. Because of illiquidity, frequence of transaction decreases, and transacting in exotic parities is getting risky. Mexican Peso, South African Rand, Turkish Lira, Russian Ruble, Indian Rupee, South Korean Won, Hong Kong Dollar can be given as examples.

While making technical and basic analysis, we need to follow economic calendar and important datas and dialogs. Also, we need to know consistency and contrast of parities according to each other.

Knowing features of product, which you will prefer, protects you from possible risks. Opening a transaction in a product ,which you do not know it’s economy, appraising currency of a country, which you cannot follow, cause to hazard your current positions, so it can cause to lose. It is deliberated that investors need to prefer products with the most liquidty in especially beginning of forex educations. Apart from that, choosing products more than 3 or 4 makes follow difficult, and it cause to lose in an account. You can transact in currency pair which it’s spreading rate is the lowest. Also, you need to know it’s economy, and follow it’s currency pair.

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