Forex pairs explained
Considering making a trade? Forex is one of the most volatile markets in the world and there are hundreds of currency combinations to choose from. Understanding how the market works is key and we’re here to help you.
Currencies are always traded in pairs. When you buy or sell one currency you automatically buy or sell another. In every currency pair there is a base currency, in this case USD (US Dollar) and a quote currency CNY (Chinese renminbi).
The price displayed for a currency pair represents the amount of quote currency, or CNY (Chinese renminbi) you will need to spend to purchase one unit of the base currency USD (US Dollar) In this example that means you need to spend 6.555704 of CNY (Chinese renminbi) in order to purchase 1 USD (US Dollar).