Forex Currency Trading Pairs - The Starting Point [part.1]

by Paul Bryan

If you look at the quotation structure of the Forex currency market, you will see something like USD/EUR or GBP/USD. These are the Forex currency pairs.

All Forex trades that involve buying of one currency and selling of another, are done in Forex currency pairs. For example, you buy Euros with US Dollars anticipating that the price of Euro will increase in value relative to the US Dollar. So, when the Euro rises relative to Dollar, you sell it and make profits.

The Forex currency pair is a single unit, an instrument that is bought or sold in the Forex market. Though there are many currency pairs available in a Forex trading system the most commonly traded Forex currency pairs are:

EUR/USD - Euro vs. U.S. Dollar GBP/USD: British Pound vs. U.S. Dollar USD/JPY: U.S. Dollar vs. Japanese YEN USD/CHF: U.S. Dollar vs. Swiss franc