#TradingPairs101 forex trading, a "trading pair" refers to two currencies being traded against each other. For example, EUR/USD represents the exchange rate between the Euro and the US Dollar. Traders buy or sell these pairs, speculating on which currency will increase in value against the other.

Here's a more detailed breakdown:

What are Forex Pairs?

Currency Pairs:

Forex trading involves buying one currency while simultaneously selling another. This "pair" of currencies defines the trade.

Base Currency:

The first currency listed in the pair (e.g., EUR in EUR/USD) is the base currency.

Quote Currency:

The second currency listed (e.g., USD in EUR/USD) is the quote currency, also known as the counter currency.

Exchange Rate:

The price of a currency pair represents the exchange rate, meaning how much of the quote currency you'll receive for one unit of the base currency.