Currency Markets and Currency Pairs

 Currency Markets and Currency Pairs

Currencies in the forex market are expressed as pairs. So, lets take a look at the EURUSD and look at what exactly makes up a currency pair.

The first thing to know, is that currency pairs are expressed in terms of the 'Base Currency' and the 'Counter Currency'. The base is always expressed first and the counter second – so in our example, the EUR is the base currency and the USD is the counter.

Once you’re ready to begin (we’ll get to that a little later in the guide) and are familiar with the platform and want to open your first trade, you’ll see two prices quoted for the EURUSD; the Sell or 'Bid' price, and the Buy or 'Ask' price, as shown below. It’s important to always remind yourself that when you click buy or sell, you’re buying or selling the first currency in the pair.