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Currency pair — definition & meaning

Two currencies quoted together, showing the price of one in the other.

A currency pair like EUR/USD shows how much of the second currency (the quote) it takes to buy one unit of the first (the base).

'Majors' involve the US dollar and are most liquid; 'crosses' don't include the dollar; 'exotics' pair a major with a smaller-economy currency and tend to have wider spreads.

The information on Trding.io is for general information only and is not investment advice. Trading involves a real risk of losing money, and most retail traders lose. Never trade money you cannot afford to lose.

Related terms

Forex (FX)
The global market for trading one currency against another.
Pip
The smallest standard price move in most currency pairs.
Base currency
The first currency in a pair — the one being priced.
Spread
The gap between the bid and ask price — a built-in cost of trading.
CFD (contract for difference)
A leveraged contract to exchange the price change of an asset, without owning it.
Spread betting
A leveraged way to bet a stake per point on a market's direction.

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