Currency Pair
A currency pair quotes one currency against another - the base against the quote - and every forex trade is a pair trade.
A currency pair quotes one currency against another, like EUR/USD, and every forex trade buys one and sells the other. EUR/USD alone was 21.2% of global turnover in April 2025.
A currency pair is the quotation of one currency against another, such as EUR/USD, where the first currency (base) is priced in units of the second (quote). Major pairs all involve the US dollar; crosses do not; exotics pair a major with a smaller economy's currency. The most traded pair, EUR/USD, was on one side of 21.2% of global turnover in April 2025. Every forex trade is a pair trade: buy one currency and sell the other simultaneously.
How It Works
- Base is first, quote is second
- Majors include USD; crosses do not; exotics pair majors with smaller currencies
- Pairs trade simultaneously in both directions
Trading Tips
Learn the majors first - they carry the liquidity and the tightest spreads
Exotics pay wider spreads that can exceed their headline move
Correlated pairs (like EUR/USD and GBP/USD) are not diversification
Currency Pair Example
Say EUR/USD quotes 1.0850. The euro is the base, the dollar is the quote: one euro costs 1.0850 dollars. Buy the pair and you are buying euros while borrowing dollars. The quote currency of your account decides what the profit converts into.
How Traders Use Currency Pair
Start with one major and learn its personality before collecting pairs. EUR/USD teaches you liquidity and news reaction. Exotics teach you expensive lessons about spreads. Know which currency in each pair actually drives your trade.
Related Terms
Put Your Knowledge Into Practice
Compare regulated brokers and find the best one for your trading style.