{"id":87,"date":"2024-08-11T12:33:55","date_gmt":"2024-08-11T12:33:55","guid":{"rendered":"https:\/\/www.mytradingland.com\/uni\/?p=87"},"modified":"2024-10-03T18:04:38","modified_gmt":"2024-10-03T18:04:38","slug":"what-is-a-currency-pair","status":"publish","type":"post","link":"https:\/\/www.mytradingland.com\/uni\/what-is-a-currency-pair\/","title":{"rendered":"What are Forex Currency Pairs?"},"content":{"rendered":"

\"major<\/p>\n

A currency pair is a tradable product made up of two currencies. Currency pairs are listed on your brokers menu so you can choose which one you want to trade.<\/p>\n

Every currency pair product has a price tag attached to it & this price is called the exchange rate.<\/p>\n

So whenever you want to trade, visit your brokers menu & select a currency pair you can afford based on your account balance.<\/p>\n

X-Ray of a Currency Pair<\/h2>\n

\"currency<\/p>\n

The currency on the left-hand side of the pair is called the Base Currency, while that on the right is the Quote Currency. <\/p>\n

The exchange rate of any currency pair is the amount of the quote currency you need to buy 1 unit of the base currency.<\/p>\n

So, if the EUR\/USD exchange rate is 1.0694, then it will take 1.0694 USD to buy 1 EUR. The exchange rate is always expressed in the quote currency.<\/p>\n

Usually exchange rates for currency pairs are quoted to 4 decimal places but when there\u2019s a need for more precision, exchange rates can be quoted to 5 decimal places (5-digit pricing as brokers like to call it).<\/p>\n

Your forex broker is the one to pair the currencies together then you select the one you desire. <\/p>\n

Not all currency pairs are the same. Some are highly sought after (high liquidity) and some are sparsely traded (low liquidity). <\/p>\n

Types of Currency Pairs<\/strong><\/p>\n

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  • \u2705Major currency pairs (highly sought after & very popular)<\/li>\n
  • \u2705Minor currency pairs<\/li>\n
  • \u2705Exotic currency pairs<\/li>\n<\/div>\n<\/ul>\n

    What are the 7 Major Currency Pairs?<\/h2>\n

    A major currency pair consists of the US Dollar<\/strong> plus the currency of another economic superpower country. There are 7<\/strong> major currency pairs in the forex market. See table below:
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