In the forex market, currencies are traded in pairs, and understanding these pairs is fundamental to trading successfully. Here’s a guide to help you grasp the basics of currency pairs and how they function. 1. What Are Currency Pairs? Currency pairs represent the exchange rate between two currencies. When you trade in the forex market, you are buying one currency while simultaneously selling another. For example, in the EUR/USD pair, you are buying the Euro while selling the US Dollar. Currency pairs are quoted with the base currency first and the quote currency second. 2. Major, Minor, and Exotic Pairs Currency pairs are categorized into three main types: Major Pairs:…