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Currency Pair

 

Definition: Traditionally GBPUSD, EURUSD, USDJPY and USDCHF a currency pair is the structure of foreign currency price quotes that include the US Dollar. A pair consists of the first currency listed (base currency) and the second currency listed (quote currency). The price quote shows how much of the quote currency is needed to buy one unit of the base currency.

 

 

Additional Info: Currency pairs tend to me the most heavily traded on the foreign exchange market. To learn more about how the FX market works see: The History of the Foreign Exchange Market & What is the Foreign Exchange Market?

Related Terms: Currency Cross

 

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