## Currency pairs,currency fx covent garden,top futures trading systems,what is a binary option trade - PDF Books

The first currency listed in the currency pair is called the base currency; the second currency is referred to as the quote, or sometimes counter currency. When published with an exchange rate, the currency pair indicates how much of the quote currency is required to purchase one unit of the base currency.
When selling a currency pair, the exchange rate shows how many units of the quote currency you will receive when selling one unit of the base currency.
By enforcing these strict standards on how to refer to currency pairs, mistakes are reduced and it is easier to keep exchange rates organized and clearly understood.
Each currency pair listed by your broker is accompanied by an exchange rate that shows the bid and ask price for the currency pair.
The bid price is the rate that your broker is willing to pay for the currency pair; in other words, this is the rate you receive if selling to the market. The ask price is the rate at which your broker is willing to sell and represents the rate you must pay to buy the currency pair.

The bid price is always less than the ask price because brokers pay less than they receive for the same currency pair.
The illustration at the top of this page shows how brokers typically display a currency pair to show the current bid and ask price. 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 first currency in a pair is called the Base Currency, the second is called the Quote Currency.
A currency pair consists of two currencies, the base currency and the currency counterpart. The price of a currency pair is the relative value of the base currency against the currency counterpart indicating the amount of currency counterpart equivalent to 1 unit of base currency.
If the exchange rate of a currency pair increases, indicates that the base currency has increased in value relative to the currency counterparty either strength of the base currency, currency weakness counterparty or by both.

A certain currency pairs is referred to as crosses and are those not involved the US dollar.
In other words it is to the value of a unit of a currency relative to the value of another currency in the foreign exchange market. There are standardized to form notations currency pairs based on priorities assigned to each currency rules. Similarly, if the exchange rate of a currency pair decreases indicate that the base currency has become relatively weaker against the currency counterpart.
The value of the pair means that 1 unit of the Base currency will cost so much of the Quote currency.