Major Currency Pairs

What this unit covers

Learn to read a real currency pair quote like USD/INR or EUR/USD: which currency is the base, which is the quote, and what a small move in the number means in real money.

By the end you will be able to

• Identify the base and quote currency in a pair like USD/INR or EUR/USD.
• State in plain words what a currency pair's number means.
• Judge whether a small rate move is significant for a real amount of money.

How it starts: A Number You Cannot Read

1. You open a trading app to check a payment due in dollars.
2. The screen shows USD/INR at 83.20 and nothing else.
3. Does that number describe the dollar, the rupee, or both together?

Words you will meet

Base currency

The first currency in a pair, the one being measured.

Quote currency

The second currency in a pair, the one used to measure the base.

Currency pair

Two currencies shown together, whose number states how much quote equals one unit of base.

In this module: Currency Markets

1. What Is Forex?
2. Major Currency Pairs (this unit)
3. Why Exchange Rates Change
4. Currency Futures & Hedging Basics