What is a currency pair and how does it work? MintGenie tells you1 min read 03 Sep 2022, 09:01 AM IST
To understand forex trading, it is important to know currency pairs since the buying and selling of global currencies takes place in pairs. In a pair, one currency is bought, known as base currency, in exchange of the other i.e. quote currency.
Foreign exchange (forex) trading happens in pairs where one currency is bought against the sale of another. The first of the two currencies in a pair is called base currency, while the second currency is known as quote currency. It is a way of comparing the value of one currency with another, which means the base currency against the quote currency. It shows how many units of quote currency are needed to buy base currency.
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