Currency pair is unit asset you must choose for trading and master characteristic of it

Basically, a currency pair is what you call the quotation and pricing structure of the currencies being traded in the forex market. The value of the currency is a rate and is determined by its comparison to another currency.

Forex trades involve purchase of one currency and the sale of another at the same time. But when you look at a currency pair, you can easily think of it as a single unit, an instrument you can buy or sell.

An example of a currency pair is the euro (EUR) against the U.S. dollar (USD) or most commonly shown as EUR/USD, also known to be one of the widely traded currency pairs.

In this pairing, the first listed currency (USD) is referred to as the base currency, while the second currency (EUR) is referred to as the quote currency. The currency pair will indicate the amount of the quote currency you’ll need in order to purchase one unit of the base currency.

If you decide to buy a currency pair, you are buying the base currency and will be selling the quoted currency. Meanwhile, when you sell the currency pair, you will be selling the base currency and will be receiving the quote currency.

The buy price of a currency is called the “bid” while the sell price of the currency is referred to as the “ask”.

The “bid” for the currency pair will tell you the amount of quote currency you’ll need in order to obtain the base currency.

On the other hand, the “ask” for the currency pair will tell you the amount you will receive in the quote currency for selling one unit of the base currency.