What is Currency Pair?
Two currencies quoted together, where one is bought and the other sold simultaneously — for example GBP/USD. The first currency listed is the base currency; the second is the quote currency.
In-Depth Explanation
Practical Example
"Buying GBP/USD at 1.2700 means buying pounds and selling dollars at that exchange rate. A rise to 1.2800 produces a 100-pip profit."
Related Terminology
Forex (FX)
The global market where national currencies are exchanged — the world's largest and most liquid financial market, operating 24 hours a day, five days a week.
Pip
A "pip" (percentage in point) is the foundational unit of measurement in forex trading, representing the smallest standard price move in an exchange rate.
Base Currency
The first currency in a forex pair quotation.
Quote Currency
The second currency in a currency pair quote.
Tradeable Instruments Affected
Tactical How-To Guides
How to Start Trading in the UK — Step by Step
Learn how to start trading in the UK. A complete step-by-step guide covering regulation, choosing a broker, and placing your first trade safely.
How to Day Trade — Step by Step
Master the art of day trading. Learn how to manage your time, choose instruments, and execute trades within a single day.
How to Keep a Trade Journal
Stop gambling and start trading. Learn the exact process for keeping a professional trading journal that identifies your edge.
Master the language of risk
Knowing the terms is just the start. Learning how to apply them is where the edge is found.
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