currency pair
A currency pair consists of two different currencies that are traded against each other in the foreign exchange market. The first currency is called the "base currency," and the second is the "quote currency." The pair shows how much of the quote currency is needed to buy one unit of the base currency. For example, in the currency pair EUR/USD, Euro is the base currency and US Dollar is the quote currency. If the pair is priced at 1.20, it means 1 Euro can be exchanged for 1.20 US Dollars. Currency pairs are used to facilitate international trade and investment.
Additional Insights
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A currency pair is a quotation that shows how much one currency is worth in relation to another. It consists of two currencies: the first currency is the base currency, and the second is the quote currency. For example, in the pair EUR/USD, the euro (EUR) is the base currency, and the US dollar (USD) is the quote currency. If the EUR/USD exchange rate is 1.10, it means 1 euro can be exchanged for 1.10 dollars. Currency pairs are crucial in foreign exchange markets, allowing traders to speculate on price movements between different currencies.
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A currency pair is the relationship between two different currencies that are traded against each other. The first currency is called the base currency, while the second is the quote currency. The value of the currency pair indicates how much of the quote currency is needed to purchase one unit of the base currency. For example, in the pair EUR/USD, the Euro is the base currency and the US Dollar is the quote currency. If the pair is quoted at 1.20, it means 1 Euro is worth 1.20 US Dollars. Currency pairs are essential for international trade and finance.