Currency Pair
Two currencies quoted against each other, showing how much of one currency is needed to buy the other.
Definition
A currency pair consists of two currencies where the value of one is quoted against the other. The first currency is the base currency, and the second is the quote currency. EUR/USD = 1.1000 means 1 euro costs 1.10 US dollars.
How It Works
- EUR/USD: EUR is base, USD is quote
- Price shows quote currency per 1 base currency
- Going long = buying base, selling quote
- Going short = selling base, buying quote
Types of Currency Pair
Major Pairs
Include USD (EUR/USD, GBP/USD, USD/JPY)
Minor Pairs
No USD (EUR/GBP, AUD/NZD)
Exotic Pairs
Include emerging market currency
Trading Tips
1
Major pairs have tightest spreads
2
Exotic pairs can have significant spreads
3
Understand which currency you're buying/selling
Related Terms
Start Trading
Put Your Knowledge Into Practice
Compare regulated brokers and find the best one for your trading style.
matched with AvaTrade
2 minutes ago