Currency Pair

Currency Pair Explanation

A currency pair is two currencies traded against each other in the forex market. The first currency in the pair is called the base currency, and the second is the quote currency. The price of a currency pair shows how much of the quote currency is needed to buy one unit of the base currency. For example, if EUR/USD = 1.10, it means 1 euro is worth 1.10 US dollars.

Currency Pair History

Currency pairs became popular after the forex market moved to a floating exchange rate system in the 1970s. Before that, many currencies were linked to gold or the US dollar. As global trade grew, currency pairs became a key part of international finance, allowing businesses, investors, and traders to exchange money efficiently. Today, forex trading is the largest financial market in the world, with trillions of dollars traded daily.

Currency Pair Etymology

The term “currency” comes from the Latin word currens, meaning “running” or “flowing,” which reflects the movement of money in an economy. The word “pair” comes from Old French paire, meaning “a set of two things.” In forex, a “currency pair” represents two currencies that are linked together for trading purposes. The naming format (e.g., EUR/USD) follows international financial standards to ensure consistency in global markets.

What are the 7 major currency pairs?

The seven major currency pairs are:

EUR/USD (Euro / US Dollar)
USD/JPY (US Dollar / Japanese Yen)
GBP/USD (British Pound / US Dollar)
USD/CHF (US Dollar / Swiss Franc)
AUD/USD (Australian Dollar / US Dollar)
USD/CAD (US Dollar / Canadian Dollar)
NZD/USD (New Zealand Dollar / US Dollar)

What currency is used in pairs?

Currency pairs always consist of two different currencies. The most traded ones include the US dollar (USD), euro (EUR), Japanese yen (JPY), British pound (GBP), Swiss franc (CHF), Canadian dollar (CAD), Australian dollar (AUD), and New Zealand dollar (NZD).

Do you buy or sell currency pairs?

In forex trading, you buy a currency pair if you think the base currency will increase in value compared to the quote currency. You sell a currency pair if you believe the base currency will decrease in value.

What are EUR pairs?

EUR pairs are all the currency pairs that include the euro (EUR). Some common EUR pairs are:

EUR/USD (Euro / US Dollar)
EUR/GBP (Euro / British Pound)
EUR/JPY (Euro / Japanese Yen)
EUR/AUD (Euro / Australian Dollar)
EUR/CHF (Euro / Swiss Franc)

ATFunded is a business name under AT Global Markets LLC which is a Limited Liability Company in Saint Vincent and the Grenadines with company number 333 LLC 2020. ATFunded is not regulated.

The material and information provided on this website are strictly for educational use and should not be taken as financial guidance. They not intended for residents of any country or jurisdiction where its distribution or use would contravene local laws or regulations.

ATFunded offers only demo accounts to all users registered for the Free Trial, ATFUNDED Challenge, and Verification products. ATFunded does not offer brokerage services, trading services, or custody of investor funds. ATFunded reserves the sole right and discretion not to provide services to residents of certain jurisdictions, including but are not limited to the United States, Iran, North Korea, Russia, Syria, Belarus, Sudan, Myanmar, Cuba, Venezuela, Yemen, Libya, Somalia, Mali and Nicaragua.

Understanding the risks involved in trading is crucial. Past performance is not a reliable indicator of future results.If you are uncertain, it is always recommended to consult with an accredited independent financial advisor. Any use of the information contained on the Company’s websites is at your own risk, and the Company assumes no responsibility or liability for any use or misuse of such information. Nothing contained herein constitutes a solicitation or an offer to buy or sell any financial instrument.

Terms Privacy Dispute

We're almost here!

Be the first to know about our launch date, presales and exclusive offers!
Subscribe now and stay up to date!