by azqa » Tue Jan 12, 2016 7:11 am
For starters, though, let's take a look at what a currency pair consists of. Currency pairs are made up of a base currency (the first) and a counter currency (the second). In the EUR/USD currency pair, EUR is the base currency and USD is the counter currency. If the exchange rate of a pair is rising, the base currency is rising in value relative to the counter currency. When the exchange rate falls, the opposite is happening.