What is a currency pair?
How to trade FX? In broadest term, Foreign Exchange is commonly referred to as FX, forex, currencies, currency pairs etc. Every FX price is quoted based on a pair of currency products. For instance, USD/JPY at the rate of 110.00 means USD1 is equivalent to JPY110 at that specific time when this price is made. At some time later, if the price goes into higher rate, it means the appreciation in value in USD relatively to JPY, and vice versa. In a FX quote, the first currency is referred to as the base currency whereas the second currency is the counter currency. It is always a standard that the whatever base currency is quoted as 1 unit in relatively to the denomination of its counter currency. Today, the 4 FX majors that are commonly traded in global market are USD/JPY, USD/CHF, EUR/USD, GBP/USD. Of course, traders can trade any other currency pairs accordingly to their needs so long as there is a made market for it. To trade FX, a buyer who generally wishes to buy may satisfy himself b
In Forex market currency plays a significant role. In Forex affiliate program, all currencies quotes in pairs like EUR/USD. A currency pair is a set of currencies that are being quoted alongside each other. In a currency pair there is constantly a quote currency and a base currency. The first currency in the pair is the quote currency and the second currency is the base currency.
Currency pairs are simply quotations that relate the current comparative worth of one nation’s currency to the currency issued by a different nation. Essentially, the currency pair illustrates the rate of exchange that would take place if a single unit of one currency was exchanged for a similar unit of currency issued by another country. The concept of the currency pair functions as the essential comparison that is used by many persons who choose to engage in Forex investments, as well as people who travel extensively to different countries. In structuring the currency pair, one currency is identified as the transaction or base currency. This is the currency that sets the standard for the comparison. The second currency is referred to as the quote or counter currency. This currency functions as the comparative measure to determine the worth of the base currency when it is compared to the current worth of the counter currency. A currency pair always involves two different currencies is
A currency pair refers to the two currencies that are involved in a foreign exchange trade. For example, if you want to buy the Japanese Yen using U.S. Dollars, you would look at the quoted price for the USD/JPY currency pair (USD = U.S. Dollar; JPY = Japanese Yen). Basically, the currency pair you should be looking at depends on the currencies you wish to trade in. What Is A Base Currency? A base currency is the currency that is first mentioned in a currency pair. In the USD/JPY currency pair for example, the base currency is the USD. In the EUR/USD currency pair (EUR = Euros), the base currency is EUR. The base currency is the currency with which the quoted price refers to. For example, the quote USD/JPY 110.00 means that one unit of the base currency (i.e. USD) is worth 110.00 JPY. To clarify, heres another example: EUR/USD 1.4600. This means that 1 unit of EUR is worth 1.4600 units of USD. To buy 1 EUR, youll need to trade in 1.4600 USD (i.e. sell 1.4600 USD). What Are Bid And Ask
