What is a Currency Pair?

Definition of Currency Pair: This pair consists of two currencies which is responsible in making an exchange rate. These are written by joining the ISO codes present in the counter and base currency, dividing them with a character. Most of the time, the character is nit used. Handling the currencies is confusing as most of the time you have to deal with the “currency pair”. The initial currency in a currency pair is called base currency. The currency following it is known as quote currency or a counter currency. The quote of the initial currency pair generally contains two prices. The bid is generally lesser than the “Ask”. It can be explained as the cost according to which a broker or market maker plans to purchase the base money by exchanging the quote or current currency. Offer or ask, generally higher than the Bid is the cost at which a dealer plans to auction the base currency by exchanging the quote currency.