Forex pairs explained
Forex trading is risky and complicated. There are countless pairs to choose from and it’s easy for a novice trader to become overwhelmed. Information is power and Born2Invest has curated some beginners forex trading tips to help you get started.
Currency pairs are the foundation of forex trading. Whenever you purchase one currency you sell another. Every pair has a base currency, in this example USD (US Dollar) and a quote currency, or CAD (Canadian Dollar).
A currency pair represents how much quote currency, or CAD (Canadian Dollar), that needs to be spent in order to purchase one unit of USD (US Dollar), the base currency. In the current example you would need to spend 1.344255 of CAD (Canadian Dollar) in order to purchase 1 USD (US Dollar).