The foreign exchange currency pair is the trading object in the foreign exchange market, which appears in the form of "pairs", such as: USD/JPY, AUD/CHF, etc. So what does this currency pair look like? Or how to understand its meaning? What are the names of the left (first) currency and the right (second) currency in a currency pair?
Let's take the currency pair USD/JPY as an example. This currency pair represents: how much Japanese yen can be exchanged for 1 U.S. dollar. Therefore, if the current USD/JPY price is 109.916, it means that 1 U.S. dollar can currently be converted into 109.916 yen, or 1 U.S. dollar = 109.916 yen.
In the currency pair USD/JPY, the USD (United States dollar) on the left side of the currency pair slash has the English name: base currency. The JPY (Japanese Yen) to the right of the slash has the English name: quote currency.
For the example AUD/CHF (Australian Dollar/Swiss Franc) mentioned above, it is also understood according to the same rules.
Isn't it simple?