NoaFX Tutorial

2.1 Definition of Forex Currency Pairs

Here is a list of the most commonly traded currencies;

For the major seven, currency symbols are as below:

A currency pair is the quotation of the relative value of a currency unit against the unit of another currency in the foreign exchange market. The currency that is used as the reference is called the counter currency or quote currency and the currency that is quoted in relation is called the base currency or transaction currency.

For example,

In this currency pair, given the value of GBP/USD is 1.55. This basically means one GBP is exchanged for 1.55 US dollars.

Types Of Pairs

There are 2 common groups of pairs;

Majors – All currency pairs that include the US Dollar, such as

  • EUR/USD
  • GBP/USD
  • AUD/USD
  • NZD/USD
  • USD/CHF
  • USD/JPY etc.

Crosses – All currency pairs that do not include the US Dollar, such as;

  • EUR/JPY
  • GBP/JPY
  • AUD/CHF
  • NZD/CAD
  • EUR/GBP etc.

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