• In the foreign exchange market, currency is traded in pairs.
  • The two currencies in a pair are traded one against the other. The rate at which they are traded is called the exchange rate. The exchange rate is affected by currency supply and demand.
  • The most common currencies traded in the market are called ‘majors’.
                                                      United States dollar (USD) 
                                                      Euro (EUR);
                                                      Japanese yen (JPY) 
                                                      British pound sterling (GBP)
                                                      Swiss franc (CHF),
                                                      Australian dollar (AUD). 
  • Most currencies are traded against the United States dollar (USD).
  • The most common currency pair is EUR/USD.

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