#TradingPairs101

A currency pair represents two different currencies that can be traded in the foreign exchange market (forex). A currency pair is always quoted in such a way that the value of one currency is shown against the other.

Example: The EUR/USD pair (Euro/US Dollar) means you are buying or selling the euro against the US dollar. The first currency (EUR) is the base currency, and the second (USD) is the quote currency. When you trade this pair, you are expecting either an increase or a decrease in the value of the euro compared to the dollar.

Currency pairs are affected by economic factors, geopolitical events, and differences in interest rates between the two countries. Understanding these dynamics is essential.