Forex pairs explained
Forex trading is inherently risky and there are countless forex pairs to choose from. The only way to make a profit from forex trading is to understand how the market works. Luckily for you the Born2Invest forex team has collated some forex trading tips to get you started.
Forex trades are always made using currency pairs. Whenever you buy one currency you are selling another. In every pair there is a base currency, for example USD (US Dollar) and a quote currency, which would be CAD (Canadian Dollar).
The price of a currency pair represents the amount of quote currency, or CAD (Canadian Dollar), that you will need to spend in order to purchase a single unit of USD (US Dollar), the base currency. So using the current example you would need to spend 1.207404 of CAD (Canadian Dollar) in order to purchase 1 USD (US Dollar).