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A currency is always bought and sold in pairs simply you need to exchange whatever money you have at hand in order to get a different one. For example, you are going to Japan so of course you need to have some Japanese Yen but since you work in the US, you only have dollars. So what will you do? Of course, you will have to exchange your dollars to yen given the prevailing market rate at that time. that's how it is done in the foreign exchange market.
over 2 years ago
Answers (1)
Well, it just represents both sides of the transaction. If you're buying something, you're exchanging something else (cash or another asset) for what you bought. If you're selling something, you're getting some other asset in return. The same applies for currency pairs. If you sell a pair, the EURUSD for example, you are selling the base currency (which is the EUR) in exchange for the counter currency (which is the USD). If you buy a pair, again the EURUSD, you are buying the EUR and selling the USD.
over 2 years ago
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