manager photo
Online Assistant
We will be pleased to answer any questions you may have
Write Call
Log in

Forex Currency Pair | Key Forex Terms

International exchange market (Currency exchange) — is the exchange, where operations on purchase and sale of currency take place between participants of the Forex market;

Forex pip (point) – is the minimum change of price of currency rate


Currency operations – contracts of participants of currency market on purchase and sale and settlement, conversion operations etc.;

Currency rate (currency quote) — the price of currency unit of one country expressed in currency unit of another country.

Types of Forex quotes:

  • Direct quote – shows the amount of US dollars contained in national currency unit;
  • Indirect quote – shows the amount of national currency contained in one US dollar;
  • Cross rate – currency units of one country expressed in currency units of another country;

Major currencies

  • EUR – United European currency
  • USD – US dollar
  • GBP – British pound of sterling
  • CHF – Swiss Frank
  • JPY – Japanese Yen

Other currencies

  • AUD – Australian Dollar
  • NZD – New Zealand Dollar
  • CAD – Canadian Dollar

Currency pair is the name of text symbols of currency.

For example, EUR/USD = 1.2880


EUR – is the base currency (traded currency)

USD – quoted currency

Base currency (traded) is always put the left.

Quoted currency is always the second

Main currencies traded on the market

EUR/USD – European currency to US dollar
GBP/USD – British pound of sterling to US dollar

USD/JPY - US dollar to Swiss Frank
EUR/CHF – European currency to Swiss Frank
USD/CHF - US dollar to Swiss Frank
GBP/JPY - British pound of sterling to Japanese Yen
GBP/CHF - British pound of sterling to Swiss Frank
EUR/GBP - European currency to British pound of sterling
EUR/JPY - European currency to Japanese Yen
AUS/USD - Australian Dollar to US dollar

USD/CAD - US dollar to Canadian Dollar

All speculations made by a trader are always conducted with base currency. Thus, buying EUR/USD, you buy Euro for US dollars.

Spread – is the difference between price of purchase (Ask) and price of sale (Bid)

Cost of one point depends on volume of your trade and is equal:

Volume of trade multiplied into minimum change of price = cost of point

Open position – is the trade for purchase/sale, which is not closed and is present on market.

Credit leverage – is the relation of borrowed capital to trader's own funds.

For example, Forex broker provides trader with credit leverage 1:100, thus, trader can make a trade with volume 100 times more than his deposit.

You might also be interesed in:



We are constantly improving our website quality. If you have any suggestions on how to make our website better or noticed an error on the website, please tell us

Tell us

Your browser does not support cookie. If cookie is disabled in your Internet browser, you may have problems with accessing Client Area. How to enable cookie .