[ cashback forex profit calculator pairs] What cashbackforexpipcalculator a currency pair? In the foreign cashback forex market, currencies are traded in pairs The two component currencies of a currency pair are interrelated forexcashbackprofitcalculator inseparable The two component currencies of a currency pair are exchanged for each other in a transaction Their exchange cashbackforexprofitcalculator is called the exchange rate The exchange rate is influenced by the supply and demand of the currency [The most common currencies] The most commonly traded currencies in the market are called the "major currencies" Most of the currencies are traded in relation to the US dollar (USD). Currency trading is conducted relative to the U.S. dollar (USD), which is the most traded currency. The next five most frequently traded currencies are: the euro (EUR); the Japanese yen (JPY); the British pound (GBP); the Swiss franc (CHF) and the Australian dollar (AUD). U.S. dollar (EUR/USD) [exchange rate] exchange rate is ever-changing market supply and demand determines the value of the currency, the value of a currency in the foreign exchange market by another currency expressed in a currency pair, the first currency is called the "base currency", the second currency is called the "currency of account "When you trade currencies, you buy the base currency and sell the denominated currency. The exchange rate tells the buyer how much it costs to buy one unit of the base currency. For example, the currency pair USD/JPY (USD is the base currency, JPY is the denominated currency) The order of the currency pairs you see does not change, so whether you buy or sell depends on the direction of the transaction e.g. USD/JPY - you can buy JPY with USD or buy USD with JPY for example: EUR/USD1.2500 means you need $1.25 to buy 1 euro. All transactions involve both buying one currency and selling another. If, on the next day, the euro strengthens against the dollar and the exchange rate becomes 1.26, then each euro you bought will give you a gain of 1 cent. Because at this point 1 euro you need to take 1.26 U.S. dollars to "buy back") [buy and sell currency] in the foreign exchange market, traders profit by buying and selling currency currency has two prices: the purchase price, called the "bid" and the selling price, called "The difference between the ask price and the bid price is the "spread" which represents the difference between a market maker buying and selling from a dealer For example: the bid/ask price of EUR/USD is 1.2100/1.2200 market maker uses $1.21 to buy 1 euro from a dealer. A market maker buys 1 euro from a dealer for $1.21, but sells it to the dealer for $1.22. If the dealer buys and sells quickly with no change in the exchange rate, they will suffer a loss due to the spread - because the dealers bid price is higher than their ask price. A "quote" is the price of a currency There are two forms of quotes in the foreign exchange market: direct quotes and indirect quotes Direct quotes are the price per dollar expressed in other currencies Indirect quotes are the price per unit of other currencies expressed in U.S. dollars Please note: In general, most currencies are quoted relative to the U.S. dollar (e.g. - "Direct quotes") but EUR, GBP, AUD, NZD and (Gold XAU and Silver XAG) use indirect quotes, for example: GBP/USD is the price at which a currency pair is traded. Reference quotes are provided by market makers for information purposes only (for traders to understand, not the real execution price)