In plain English
What Minor currency pair means
Minor pairs are often called crosses. They can involve currencies such as EUR/GBP, EUR/JPY, or AUD/NZD, depending on the market. These pairs avoid direct use of the U.S. dollar, but they are still priced and traded through the FX market, often with liquidity that is lower than in major pairs.
Why it matters
Minor pairs can offer different exposure than USD pairs, including sensitivity to two non-dollar economies at once. They may also have wider spreads or less depth than the most liquid majors, which can affect fill quality and short-term volatility. Traders sometimes use them to express relative strength between two currencies.
Example
If EUR/GBP rises, the euro is strengthening relative to the pound. A trader buying EUR/GBP is buying euros and selling pounds. This is a simplified example; the actual price, spread, and available liquidity depend on the venue.
Quick answers
Common questions
Are minor pairs the same as crosses?+
In common FX usage, yes. A cross is a pair that does not include the U.S. dollar, and ‘minor’ is often used for the same category.
Can a minor pair be very liquid?+
Yes. Some non-USD crosses are heavily traded, but they still are not defined by having the dollar on one side.
Sources