Lesson 2 · Beginner

How Currency Pairs Work

Base and quote currencies, and what buying a pair actually means.

5 min read

Base and quote

The first currency listed is the base, the second is the quote. The price shows how much of the quote currency one unit of the base is worth.

Buying the pair means buying the base and selling the quote at the same time.

Key takeaways

  • Base currency comes first
  • Every trade is simultaneously long one currency and short another

Trading leveraged products carries significant risk. This content is educational and is not financial advice.