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Currencies square measure continuously bought and sold in pairs.
allow us to take associate example to clarify the forex deal A merchant trades in Euros/ North American nation greenbacks.
He purchases ten,000 Euros on January one once the EUR/USD rate is .9600. Thereby creating a cool forex group action profit of USD 2200.
Then he sells these Euros at the market rate of one.1800. Since all currencies square measure bought and sold in pairs, one must decide the combine of currency that you simply would love to try and do your currency transactions in.
during this example EUR is that the base currency and also the USD is named the quote or the counter currency.