Trading Currency Pairs
What actually takes place when you trade Forex? What does it mean when we talk about "currency pairs"?
The concept of Forex trading can be a little tricky to grasp. Trading stock involves the buying and selling of a piece of a company while Forex trading involves buying a portion of a country’s currency. The price of one currency in a currency pair is measured against another currency. It’s like going to the bank and exchanging a dollar for a euro. You are selling your dollar and buying a euro or a part of a euro.
The Euro/US Dollar is a currency pair.
This lesson will go into more detail regarding the currency pairs list.