Lesson 2: Currency Pairs Decoded – How to Read, Trade, and Profit from Every Quote

🟦 Lesson 2: Currency Pairs and Market Structure

Not all currency pairs are created equal. Here’s how they’re categorized:

💱 Types of Currency Pairs

• Major Pairs – Most traded (e.g., EURO – USD, USD – JPY)
• Minor Pairs – No U.S. Dollar involved (e.g., EURO – GBP)
• Exotic Pairs – A major currency vs. one from a smaller economy (e.g., USD – TRY)

🧠 Base Currency vs. Quote Currency

In a pair like EURO – USD = 1.1000:

• EURO is the base currency
• USD is the quote currency
• This quote means 1 EURO = 1.10 U.S. Dollars

We always buy or sell the base in relation to the quote.

For more foundational knowledge, check out the Forex Fundamentals eBook included in the Forex Starter Kit.