The Definition of Currency Pair
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The quotation and pricing structure of the currencies traded
in the forex market: the value of a currency is determined by its comparison to
another currency.
The first currency of a currency pair is called the "base currency", and the second currency is called the "quote currency". The currency pair shows how much of the quote currency is needed to purchase one unit of the base currency.
The first currency of a currency pair is called the "base currency", and the second currency is called the "quote currency". The currency pair shows how much of the quote currency is needed to purchase one unit of the base currency.
A currency pair is the quotation of the
relative value of a currency unit against the unit of another currency in
the foreign exchange market. The currency that is used as the reference is
called the counter currency or quote currency and the currency that
is quoted in relation is called the base currency or transaction
currency.
5 Most Predictable Currency Pairs
1. USD/JPY: This is a huge shift from earlier periods.
2. NZD/USB: The pair changed its course from a steady and
healthy rally to more range bound trading.
3. EUR/AUD: While both EUR/USD and AUD/USD are
choppier and less predictable now, the cross is moving quite nicely.
4. GBP/USDZ: Cable closed the list last time, and its
behavior improved since then.
5. EUR/USD: The most popular pair closes the list.
Investopedia explains Currency Pair
All forex trades involve the simultaneous buying of one currency and selling of another, but the currency pair itself can be thought of as a single unit, an instrument that is bought or sold. If you buy a currency pair, you buy the base currency and sell the quote currency.
