Currency Pairs, Buying and Selling Rates
In the forex market, there is all about the foreign currency trading – The base currency and the counter currency.
The base currency – It is in essenceour product, it is denoted on the left side of the pair. We always buy and sell the base currency.
The counter currency – it is the means of payment and is denoted on the right side of the pair. In a transaction involving the EUR/USD, it buy or sell the Euro against the USD where in the means of my payment is the USD.
What is Exchange Rate
The exchange rate is the price of one unit of the base currency in term of the counter currency. Let see the examples below:
> EUR/USD = 1.5220, GBP/USD = 1.4595, USD/JPY = 91.19, USD/CHF = 1.1458, NZD/USD = 0.6788, AUD/USD = 0.8400
For the first example, It is Euro against the USD, It means that one Euro is equal to 1.5220 USD.
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