Live Chat

A currency pair is, literally, a ‘pair’ of two currencies.

When you place any trade on the forex (foreign exchange) market, you do so as part of a currency pair, by speculating on the value of one currency against the other.

Start Trading Now

You’ll probably have seen currency pairs before. They look like this:

The order of the currencies isn’t random:

  • The first currency is known as the ‘base’ currency
  • The second currency in the pair is known as the ‘quote’ currency

When you place a forex trade, you are always trading the price of the base currency against the quote currency.

So, if your pair is EUR/USD, you’re trading the value of the Euro against the US Dollar.

If your pair is USD/GBP, you’re trading the value of the US Dollar against the Euro.

And so on.

If you place a ‘long’ trade on the EUR/USD, then if the Euro increases in value against the US dollar, you will profit. If it decreases in value, you will lose money.

Vice versa, if you place a ‘short’ trade on the EUR/USD pair, and the Euro falls in value against the US dollar, you’ll profit. If it increases in value against the US Dollar, you’ll lose money.

What are the most traded currency pairs?

what is currency pairs

According to data from BIS Triennial Central Bank Survey, the most three most popular currency pairs are:

  1. EUR/USD – Euro/US Dollar
  2. USD/JPY – US Dollar/Japanese Yen
  3. GBP/USD – British Pound/US Dollar

相關教育文章

星期三, 6 十一月 2024

Indices

基本面分析和技術分析的區別和優略勢

星期二, 29 十月 2024

Indices

如何投資黃金?黃金投資入門指南

星期二, 29 十月 2024

Indices

5種黄金投资方式

星期一, 28 十月 2024

Indices

標普 500 指數是什麽?| market.com

Live Chat