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.
Currency pairs are sometimes then written by concatenating the ISO currency codes (ISO 4217) of the base currency and the counter currency, separating them with a slash character. Often the slash character is omitted. A widely traded currency pair is the relation of the euro against the US dollar, designated as EUR/USD. The quotation EUR/USD 1.2500 means that one euro is exchanged for 1.2500 US dollars.
The most traded currency pairs in the world are called the Majors. They involve the currencies euro, US dollar, Japanese yen, pound sterling, Australian dollar, Canadian dollar, and the Swiss franc.
Read more about Currency Pair: Syntax and Quotation, Base Currency, The Majors, Nicknames, Cross Pairs, Trading
Famous quotes containing the words currency and/or pair:
“There is no legislation—I care not what it is—tariff, railroads, corporations, or of a general political character, that all equals in importance the putting of our banking and currency system on the sound basis proposed in the National Monetary Commission plan.”
—William Howard Taft (1857–1930)
“... the Ovarian Theory of Literature, or, rather, its complement, the Testicular Theory. A recent camp follower ... of this explicit theory is ... Norman Mailer, who has attributed his own gift, and the literary gift in general, solely and directly to the possession of a specific pair of organs. One writes with these organs, Mailer has said ... and I have always wondered with what shade of ink he manages to do it.”
—Cynthia Ozick (b. 1928)