In CFD (Contract for Difference) trading, the “major pairs” refer to the most heavily traded currency pairs in the forex market, offering high liquidity and tight spreads. These pairs always include the US Dollar (USD) paired with other major global currencies.
The 7 Major Forex CFD Pairs
Pair
Nickname
Typical Spread (Low Volatility)
Key Traits
EUR/USD
“Fiber”
0.1 – 1.0 pips
Most liquid, low volatility
USD/JPY
“Gopher”
0.2 – 1.5 pips
Safe-haven (Yen reacts to risk sentiment)
GBP/USD
“Cable”
0.5 – 2.0 pips
Volatile (UK economic data-sensitive)
USD/CHF
“Swissie”
0.5 – 2.0 pips
Inverse correlation with EUR/USD
AUD/USD
“Aussie”
0.3 – 1.5 pips
Commodity-linked (iron ore, gold)
USD/CAD
“Loonie”
0.5 – 2.0 pips
Tied to oil prices (Canada’s exports)
NZD/USD
“Kiwi”
0.5 – 2.5 pips
Agricultural export-driven
Why Trade Major Pairs in CFDs?
High Liquidity → Tight spreads, minimal slippage.
Lower Risk → Less prone to extreme volatility vs. exotics (e.g., USD/TRY).
24/5 Market Access → Active in London, NY, Tokyo sessions.
News-Driven Opportunities → React to Fed, ECB, or BoJ announcements.
CFD Trading vs. Spot Forex for Majors
Feature
CFD Trading
Spot Forex
Leverage
Yes (Up to 30:1 in EU, 500:1 offshore)
Rarely offered (or lower)
Short-Selling
Instant (No borrowing needed)
Requires borrow arrangements
Overnight Fees
Yes (Swap rates apply)
No (Unless using leverage)
Ownership
No physical currency
Own the actual forex balance
Best CFD Major Pair Strategy
Breakout Trading (London/NY Session Overlap)
When: 8 AM – 12 PM EST (Highest liquidity).
Pairs: EUR/USD, GBP/USD (most volatile during overlap).
Setup:
Trade breakouts of Asian session range with 10:1 leverage.
Stop-loss: 20 pips, Take-profit: 50 pips.
Example:
Buy EUR/USD CFD if price breaks above 1.0800 resistance.
Leverage: 10x → For every $1,000, control $10,000 position.
50-pip gain = $500 profit (5% ROI).
Risks to Watch
Leverage Wipes Accounts → A 1% move against you at 100x = 100% loss.
