How Currency Pairs Work?
Every Forex trade involves a currency pair, uch as AUD/USD or EUR/JPY. The first currency (AUD in this example) is called the base currency, and the second (USD) is the qoute currency. If the AUD/SD is trading at 0.65, it means 1 Australian dollar buys 0.65 US dollars.
Currency pairs are usually grouped as major, minor or exotic. MAjors incldue theb USD and represent the most traded pairs globally. Minors excluse the USD but stil involve strong currencies like AUD, EUR, GBP or JPY. Exotics involve emerging economics and are far more volatile.