Results for tag: "Currency Pair"

A currency pair is a quotation of the relative value of a currency unit against the unit of another currency in the foreign exchange market. The currency that is used as the reference is called the counter currency, quote currency or currency and the currency that is quoted in relation is called the base currency or transaction currency. Currency pairs are generally written by concatenating the ISO 4217 currency codes of the base currency and the counter currency, separating them with a slash character. The currency pair market is an important part of the foreign exchange market, as it allows investors to speculate on the relative value of two different currencies. The currency pair market is also used by companies to hedge against foreign exchange risk. Companies in the currency pair market include banks, brokerages, and currency trading platforms. Examples include Bank of America, TD Ameritrade, and eToro. Show Less Read more