The two halves of a pair
In a pair like EUR/USD, the first currency (EUR) is the base and the second (USD) is the quote. The price tells you how much of the quote currency it takes to buy one unit of the base. So EUR/USD at 1.1000 means one euro costs 1.10 US dollars.
Reading this correctly is the foundation of understanding your position. When you buy EUR/USD, you are buying the base (euros) and paying in the quote (dollars). When the number rises, the base has strengthened against the quote.
Why this affects your account
Your position size is expressed in the base currency. One standard lot of EUR/USD is 100,000 euros of exposure. The profit or loss, however, arrives in the quote currency, which is then converted to your account currency if it differs.
This matters for a subtle reason: if the quote currency is not your account currency, the exact value of a pip can shift slightly with exchange rates. It is a small effect on major pairs but worth knowing so nothing on your statement looks mysterious.
A quick sanity check
A useful habit is to say the position out loud: "I am long EUR/USD" means "I expect the euro to strengthen against the dollar." If you cannot phrase your trade that plainly, you may not be clear on what you are actually betting on.
Clarity here prevents costly confusion later, especially on pairs where the currencies are less familiar. Always know which currency you are buying and which you are selling.