Currency Pair
A currency pair represents the exchange rate between two currencies, one being bought and the other being sold.
Quick Reference:
Shows price of one currency for another. Base/Qoute.
Expanded Explanation:
In Forex, every trade involves two currencies. Buying one while selling another. For example, if the AUD/USD is qouted at 0.6500, it means one Australian dollar is worth 65 US cents. Understanding base and qoute is fundamental to reading charts, calculating profit and loss, and predicting movements based on global economic shifts. Traders often Specialise in a few key pairs such as the “majors,” which include the USD and are known for high liquidity.