Currency pairs explained
Forex trading is inherently risky and there are countless currency pairs to choose from. The only way to make a profit from forex trading is to understand how the market works. Lucky for you, the Born2Invest forex team has put together some forex trading tips to get you started.
Forex transactions are always carried out using currency pairs. Every time you buy one currency, you sell another. In each pair there is a base currency, for example EUR (Euro) and a quote currency, which would be GBP (British pound sterling).
The price of a currency pair represents the amount of the quote currency, or GBP (British pound sterling), which you will need to spend to purchase a single unit of EUR (Euro), the base currency. So, using the current example, you will have to spend 0.892427 of GBP (British pound sterling) to buy 1 EUR (Euro).