What is a currency pair?

In forex trading, all currencies are quoted in pairs. For example, in comparing the Euro (EUR) to the US Dollar (USD), you would quote the currency pair EUR/USD. A currency pair is a set of currencies that are quoted against each other. In a currency pair, there is always a quote currency and a base currency. The first currency in the pair is the “Base” currency, and the second currency is the “Quote” currency. When we render a Forex quote for this pair, we are saying how many dollars each Euro is worth. If the quote is EUR/USD 1.31, that means 1 euro is worth 1.31 US dollars.