What is the difference between major, minor and exotic currency pairs?

Majors are pairs that include the US dollar and another large currency, such as EURUSD, GBPUSD, USDJPY, USDCHF, USDCAD, AUDUSD and NZDUSD. They have the highest volume and usually the lowest spreads.

Minors (also called crosses) do not include the dollar, for example EURGBP, EURJPY or GBPJPY.

Exotics pair a major currency with the currency of a smaller or emerging economy, for example USDTRY or USDZAR. They have wider spreads, bigger jumps and higher overnight costs, so they are harder for beginners. Start with one or two majors.