USD Daily chart, showing constant motion of the forex market. In the Forex market, currencies always trade in pairs. Forex trading terms definitions you exchange US dollars for euros, there are two currencies involved. For every foreign exchange transaction, you must exchange one currencyfor another.
This is why the forex market uses currency pairs, so you can see the cost of one currency relative to another. The Forex market uses symbols for currencies. The euro is symbolized by EUR, the US dollar is the USD. JPY for example, will have a market price associated with it. If you want to find out how many euros it costs to buy one U. To find out this rate, divide 1 by 1.
7334 euros to buy one USD based on the current price. The price of the currency pair constantly fluctuates, as transactions occur around the globe, 24-hours a day during the week. The profit you made on the above theoretical trade depends on how much of the currency you purchased. 5 for a 50 pip gain. This assumes you have a USD trading account. How much each pip is worth is called the “pip value.