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:
“Common experience is the gold reserve which confers an exchange value on the currency which words are; without this reserve of shared experiences, all our pronouncements are cheques drawn on insufficient funds.”
—René Daumal (1908–1944)
“The works of women are symbolical.
We sew, sew, prick our fingers, dull our sight,
Producing what? A pair of slippers, sir,
To put on when you’re weary or a stool
To stumble over and vex you ... “curse that stool!”
Or else at best, a cushion, where you lean
And sleep, and dream of something we are not,
But would be for your sake. Alas, alas!
This hurts most, this ... that, after all, we are paid
The worth of our work, perhaps.”
—Elizabeth Barrett Browning (1806–1861)