What is Currency Pair?

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A currency pair is the standard quotation of the relative value of one currency unit against another in the foreign exchange (FX) market, consisting of a base currency and a quote currency to express the exchange rate. This pairing is the fundamental instrument for all FX trading, where the price indicates how much of the quote currency is required to purchase one unit of the base currency.

Currency Pair

What is Currency Pair?

What is the fundamental structure of a currency pair, and how is its value quoted in the foreign exchange market?

How do the different classifications of currency pairs—Major, Minor, and Exotic—impact trading volume, liquidity, and risk for FX traders?

Why are currency pairs essential tools for international businesses and investors engaging in hedging and arbitrage strategies?

What key economic and geopolitical factors drive the fluctuation of a currency pair's exchange rate, and how are these factors analyzed?

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