Currency Pairs in Forex: The Foundation of Trading
In Forex trading, every transaction involves two currencies, known as a currency pair. The first is the base currency, and the second is the quote currency. For example, in EUR/USD = 1.10, the euro (EUR) is the base currency, while the US dollar (USD) is the quote currency—meaning 1 euro equals 1.10 US dollars. Understanding this simple structure is the foundation of all Forex trading strategies.