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Glossary / Market basics

Currency pair

Two currencies quoted against each other, like EUR/USD: the price is how many of the second you pay for one of the first.

The first currency is the base, the second the quote. Buying EUR/USD means buying euros and selling dollars.

Majors (pairs with the US dollar, like EUR/USD and GBP/USD) have the tightest spreads and the most liquidity.

Go deeper

  • The S&P 500 for beginners

More terms: Market basics

  • Pip
  • Lot
  • Spread
  • Leverage
  • Margin
  • Margin call
  • Swap (overnight fee)
  • Broker
  • CFD (contract for difference)
  • Volatility
  • Trading session
  • Economic calendar

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