Minors in forex
Family I · Instruments
Not to be confused with minors in forex.
Minors in forex has two distinct meanings in trading terminology. In market structure, it denotes a currency pair that excludes the US dollar from both sides of the quote. In account opening, it refers to a trading account held by a person below the legal age of majority, which most brokers restrict or require to be opened under a custodial arrangement.[1]
Minor currency pairs
A minor pair is any currency pair in which the US dollar is absent from both the base and the quote. Examples include EUR/GBP, EUR/JPY, GBP/JPY and AUD/NZD. These pairs are generally liquid but typically carry wider spreads than major pairs because they are traded less frequently.
Minor pairs are distinct from exotic pairs, which pair a major currency with a currency from a smaller or emerging market.
Minor accounts
In account opening, a minor is a person who has not reached the legal age of majority in their jurisdiction. Rules for minors vary by country and by broker. Some brokers permit custodial accounts opened by a parent or guardian; others do not accept minors at all. Age thresholds and documentation requirements are set by local law and individual broker policy, so they cannot be stated as a single universal figure.
Worked example: spread cost on a minor pair
The wider spread on a minor pair raises the cost of a round trip compared with a major pair. The figures below are illustrative.
Often confused with
- minors in forex
- Minors in forex are currency pairs that exclude the US dollar but are actively traded, such as EUR/GBP, EUR/JPY and GBP/JPY, and are distinct from major pairs and from exotic pairs.
See also
References
- ↑ ISO 4217, the international standard that assigns each currency its three-letter code. The codes used in every pair quotation come from this standard, not from brokers.