Currency Pairs and Exchange Rates

[sahara]

Currencies are always quoted in pairs, representing the value of one currency relative to another. The first currency in the pair is called the base currency, while the second currency is the quote currency. Exchange rates determine the value of a currency pair and are influenced by economic factors, geopolitical events, and market sentiment.

 

[Fin_Trader]

Also, different currency pairs have different volatility and different spreads. Therefore, when choosing pairs for trading, you need to take this into account. For example, it is better for beginners not to immediately start trading highly volatile pairs such as XAUUSD, for example, when trading such a pair, unsuccessful entries can quickly destroy the deposit. For example, I like to trade pairs with moderate volatility such as EURUSD and the spreads for such a pair at my broker are minimal (0.01-0.02).