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Resolved Question
What is a currency pair?
Why are the currencies sold in pairs?
over 2 years ago
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The term “currency pair” is the structure of the currencies traded in forex. The structure has 2 parts: quotation (estimated value) and pricing (relative value) – the base currency and the quote currency, respectively.
A currency pair consists of 2 currencies used to make a trade on the foreign exchange market (or forex). The two currencies are put together and separated by the slash character in between. (A slash can also be absent.)
Example: EUR/USD
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over 2 years ago
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Answers (1)
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.
The most commonly traded currencies are the following:
US Dollar (USD)
Euro (EUR)
Japanese Yen (JPY)
Sterling Pound (GBP)
Canadian Dollar (CAD)
Australian Dollar (AUD)
New Zealand Dollar (NZD)
Swiss Franc (CHF)
The most commonly traded currency pairs are the following:
EURUSD
GBPUSD
USDJPY
USDCAD
USDCHF
NZDUSD
The first currency in the pair is called the base currency while the last one is termed as the counter.
To learn more about currencies and currency trading, kindly click on the link below. Thanks!
over 2 years ago
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