Currency Pair

In this article, We learn about "Currency Pair ".Let's Go!

A A currency pair is a quotation of the exchange rate of two different currencies traded on the foreign exchange market.

Forex trading is the simultaneous buying of one currency and selling of another.

When you trade in the Forex market, you buy and sell in currency pairs.

Each currency in a currency pair is listed with a three-letter code.

The first two letters identify the country name, and the third letter identifies the country's currency name, which is usually the first letter of the currency name.

For example, USD represents U.S. dollars and CAD represents Canadian dollars

Currency Pair - USDCAD

If EUR/USD is trading at 1.0950, one Euro is worth 1.0950 USD.

If the euro appreciates against the dollar, then the single euro will be worth more to the dollar, and the price of the currency pair will increase.

If the EUR/USD depreciates, the price of the currency pair will fall.

If you believe that the base currency in a currency pair is likely to strengthen relative to the quote currency, you can open a long position ("Buy the currency pair").

If you think the price will weaken, you can go short (“sell the currency pair”).

Learn more about currency pairs and the different types such as "major pairs" and "minor pairs".

You can see a long list of currencies traded against the US dollar here.

If you want to learn more foreign exchange trading knowledge, please click: Trading Education.

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