Glossary · from the DESK dictionary
Currency Pair
The quotation of two currencies against each other, whose exchange rate is traded in the forex market.
In plain words
The basic building block of forex trading — you never trade one currency alone, always relative to another.
In more detail
A currency pair consists of a base currency and a quote currency (e.g. EUR/USD). The rate shows how many units of the quote currency are needed to buy one unit of the base currency.
Example
EUR/USD at 1.10 means: 1 euro is worth 1.10 US dollars.
What it means for traders
A fundamental concept for any forex trading.
Common pitfalls
Exchange rates can swing very abruptly around central bank decisions and macro data.
Related terms
Base Currency · Big Figure · Cable · Cross Rate · Direct Quote · Pip · Quote Currency · Triangular Arbitrage · Majors, Minors and Exotics
From the DESK dictionary. For information only, not investment advice.
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DESK is a research tool and not investment advice. Page generated: 2026-10-12.