Synonyms: Currency Pairs

A currency pair is two different currencies, with the value of one of the currencies quoted against the value of the other. Essentially a currency pair is how you compare one currency with another.

The first currency (the base) is valued against the second (the quote), which shows you how many of the quote currency is required to purchase one unit of the base.

Suppose the Euro is trading at 1.2200 US Dollars and you believe the Euro is going to appreciate against the Dollar. You would buy (or go “long”) on the EURUSD pair.

You have just simultaneously bought Euros and sold US Dollars.

If you are correct and the Euro appreciates to 1.2700 you would sell Euros you bought at 1.2200 at the new rate of 1.2700.

All Forex trading is done in terms of currency pairs. The following pairs are commonly traded:

Currency Pairs

Symbol Currencies Traders Term
EURUSD Euro / US Dollar EuroDollar
GPBUSD British Pound/US Dollar Cable
USDJPY US Dollar / Japanese Yen DollarYen
USDCHF US Dollar / Swiss Franc DollarSwiss or “Swissie”
USDCAD US Dollar / Canadian Dollar DollarCanada
AUDUSD Australian Dollar / US Dollar AussieDollar
EURGBP Euro / British Pound EuroSterling
EURJPY Euro / Japanese Yen EuroYen
EURCHF Euro / Swiss Franc EuroSwiss
GBPCHF British Pound / Swiss Franc SterlingSwiss
GBPJPY British Pound / Japanese Yen SterlingYen
CHFJPY Swiss Franc / Japanese Yen SwissYen
NZDUSD New Zealand Dollar / US Dollar NewZealandDollar or “Kiwi”
USDZAR New Zealand Dollar / US Dollar DollarZar

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