Forex
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What are Currency Pairs?
Currency pairs are financial instruments that compare the value of one currency against another. They show how much of one currency is needed to purchase a unit of the other.
Here’s a simplified example:
The currency pair GBP/USD is at 1.15.
You can exchange 1 GBP for 1.15 USD.
- If the GBP/USD began the day at 1.15 and increased to 1.16 by the day's end, it indicates that the British Pound has gained strength relative to the US Dollar.
- If the GBP/USD opened at 1.15 and fell to 1.13, it means the British Pound has depreciated against the US Dollar.
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