In forex, cross-currency pairs are those that do not involve the US dollar. They are widely used by traders who want to bypass the dollar and directly trade two non-USD currencies. These pairs are divided into several major categories, each offering different opportunities and risks.

The first type is the major crosses, which involve the most traded currencies after the US dollar, such as the euro (EUR), British pound (GBP), and Japanese yen (JPY). Examples include EUR/GBP, GBP/JPY, and EUR/JPY. These pairs usually have high liquidity and tighter spreads, making them attractive for active traders.

The second type is the commodity crosses, where currencies are linked to resource-driven economies. Popular examples include AUD/JPY, CAD/JPY, and NZD/JPY. These pairs are influenced by commodity prices like oil, gold, and agricultural products, creating opportunities for traders who follow global resource markets.

The third type is the minor crosses, which involve smaller but still actively traded currencies, such as EUR/CHF, GBP/CHF, or EUR/AUD. They generally have lower liquidity than the major crosses but still attract significant trading volume.

Finally, there are exotic crosses, which include a major currency paired with a currency from a developing or smaller economy, such as EUR/TRY or GBP/ZAR. These pairs can be highly volatile, with wider spreads, offering both higher risk and reward.

Together, these cross-currency pairs expand trading possibilities beyond dollar-centred markets.