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A forex trading means that you simultaneously buy one and sell another currency. The currency is traded through a broker or distributor and in pairs, for example Euro and Dollar (EUR/USD) or British pound and Japan yen (GBP/JPY).
You can imagine, each currency pair as a game of dragging which each side is a coin. The fluctuation of the exchange rate depends on which currency is stronger at that time.
Major Currency Pairs:
The currency pairs below are considered major pairs. These pairs have USD and trade the most. They are highly liquid and are widely traded in the world.
Major Cross Currency Pairs or Minor Currency Pairs:
Currency pairs that do not contain the dollar are known as hybrid currency pairs, called crosses. They are also considered as secondary currency pairs. Most of the currency pairs are derived from three main currencies: EUR, JPY and GBP.
Exotic Pairs:
Exotic pairs are combined from a major currency and a currency of new economies such as Brazil, Mexico, or Hungary. In the picture below are some examples of foreign currency pairs.
Depend on the forex brokers you can see several pairs of exotic pairs are mentioned. Keep in mind that these pairs are more difficult to trade than the major pairs and minor pairs, so the cost of switching involves dealing with exotic pairs usually expensive.
It is not strange if the difference between the buy and sell price exotic pairs is two or three times greater one of the EUR/USD or USD/JPY. So if you want to trade exotic pairs, consider this.