​📘 What Is a Currency Pair?

​

A currency pair looks like this:

EUR/USD = 1.1000

• EUR = Base currency (the one you're buying)

• USD = Quote currency (the one you're selling)

• 1.1000 = Exchange rate (you need 1.10 USD to buy 1 Euro)

​

🔑 Types of Currency Pairs

​

🟩 Major Pairs

Most traded, highest liquidity, usually include USD:

• EUR/USD

• GBP/USD

• USD/JPY

• USD/CHF

• AUD/USD

• USD/CAD

• NZD/USD

​

🟨 Minor Pairs

Don't include the USD but still highly liquid:

• EUR/GBP

• EUR/JPY

• GBP/JPY

​

🟥 Exotic Pairs

Major currency + a developing/emerging currency:

• USD/TRY (Turkish Lira)

• USD/ZAR (South African Rand)

• EUR/THB (Thai Baht)

​

🔍 Understanding a Quote

GBP/USD = 1.2850

• You are buying British Pounds (GBP) and selling US Dollars (USD)

• 1 GBP costs 1.2850 USD

• If the rate goes up, the Pound is getting stronger

​

📈 How You Profit

You profit from the change in the exchange rate:

• Buy (Long) if you think the base currency will go up

• Sell (Short) if you think the base currency will go down