Major Pairs and Cross Currency Pairs

So there are major pairs and cross currency pairs. What’s the difference?
In the Forex market, the most used currency is the US dollar because of its high demand and relatively stable value. As a result, several of the most traded currency pairs involve the US dollar and these are therefore called major pairs.

However, pairs that do not involve trading US dollars do exist and they are called cross currency pairs. These pairs are usually not as liquid or are harder to trade with, but it can be profitable for more experienced traders.

Among the popular crosses are those that involve the Euro, the second most used currency in Forex, such as EUR/CHF, EUR/GBP, and EUR/JPY. Since these pairs all involve major currencies and are used by some of the world's largest economies, their liquidity is still relatively high and comparable to those involving US dollars.

Other less liquid pairs such as GBP/JPY, CAD/JPY for the Canadian dollar and Japanese yen, and NZD/JPY for New Zealand Dollars are useful because of the large difference in interest rates between the currencies involved. By selling a low interest currency in exchange for a higher interest one, a trader can gather the difference as profits. The yen is well known to have a particularly low interest rate while the others have historically favored higher ones.
Additionally, the CAD/JPY pair has been known to be traded more whenever oil prices climb since Canada profits from its oil exports and Japan loses from its imports.