Currency pairs and quotes

Currencies are always traded in pairs. In EUR/USD, the euro is the base currency and the US dollar is the quote currency. A price of 1.0850 means one euro costs 1.0850 dollars.

If you buy EUR/USD, you profit when the euro strengthens against the dollar. If you sell, you profit when it weakens. Majors pair the US dollar with another major currency; crosses, such as GBP/JPY, leave the dollar out.