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currency pair

Definition

The two currencies used in a foreign exchange transaction. The currency pair consists of a base currency and a counter currency. The value of the currency pair is determined by the rate at which one unit of the base currency is converted into units of the counter currency. For example, a currency pair could be U.S. dollars/Japanese Yen or Swiss Francs/British pounds.

Featured Tip

Buying and Selling CurrenciesRegarding the specifics of buying and selling on forex, it is important to note that currencies are always priced in pairs. All trades result in the simultaneous purchase of one currency and the sale ... Read more