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Investment
Currency Pair
Two currencies traded together in forex, such as EUR/USD or GBP/JPY.
Major pairs (EUR/USD, GBP/USD) have tight spreads and high liquidity. Minor and exotic pairs are riskier and more expensive to trade. Understanding how pairs move together is key to successful forex trading.
It's a dance between two currencies — when one goes up, the other goes down.
Real world: EUR/USD is the most traded pair. If the euro gets stronger against the dollar, EUR/USD rises. Traders specialise in certain pairs because each has its own personality and reacts differently to news.
💡 Every forex trade is a bet on the relationship between two currencies.