What is a Currency Pair?

A currency pair is a foreign exchange rate composed of two currencies. It is represented by two ISO codes plus a separator, such as GBP / USD, where the first code represents the "base currency" and the other is the "secondary currency".

Currency pair

A currency pair is represented by two ISO codes plus a separator, such as GBP / USD, where the first code represents the "base currency" and the other is the "secondary currency".

The most common currency traded in the most common currency markets is called the "major currency." Most currencies are bought and sold against the US dollar (USD). The US dollar (USD) is the currency with the most transactions. The next five

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The "quote" is the price of the currency.

According to investment experts from Global Gold Exchange, currency pairs are divided into straight and cross.

Straight disk refers to the actual exchange rate of a country's currency directly with the US dollar in the international foreign exchange market. This is simply understood: everything that is directly related to the US dollar is straight, for example: USD / CAD, USD / JPY, USD / CHF, USD / EUR, USD / GBP, USD / AUD, etc. Dollar peg, this is straight. Because the US dollar is the world's most liquid currency, because of its large liquidity and large volatility, most investors make more direct transactions.

Conversely, what is not linked to the US dollar is a cross, such as: EUR / GBP AUD / JPY AUD / CAD, etc. There is no direct participation of the US dollar in these, which is a cross. ^[1]