Currency pair

In forex, currencies are traded in pairs. A currency pair consists of two particular currencies that are bought and sold. The first currency is known as the base currency, and the second one is known as the quote currency. The value of a currency pair is determined by the value of one currency against the other (the base currency versus the quote currency). In other words, its value is determined by how much of the quote currency is required to buy a single unit of the base currency.

For example, EUR/USD is a currency pair. EUR is the base currency, and USD is the quote currency. If it says that EURUSD is trading at 1.20, it means that $1.20 is required to buy €1.