Understanding the currency pair when trading CFD on Forex Currencies.
Forex trading is based on currency pairs. When trading forex one speculates whether the price of one currency will rise or fall against the other currency. The currency pair indicates how much of the counter currency is needed to buy the base currency.
Example: If the EUR/USD trades at 1.08 it means that one euro costs 1.08 US dollars, i.e. 1.08 US dollars are needed to buy one euro.
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