Forex trading is the simultaneous buying of one currency and selling another. Currencies are traded in pairs, for example the euro and the U.S. dollar (EUR/USD). When you see a Forex quote it will always be quoted as a pair. A pair is a pairing of two currencies. A pair and it’s price is basically the summary of a sentence like this one:
One Euro is currently worth about 1.4 U.S. dollars оr EUR/USD = 1.4
In the graph below you’ll see the “majors” currency pairs. Every pair contains the U.S. dollar (USD) on one of the side and are the most frequently traded. The majors are the most liquid and widely traded currency pairs in the world.
Currency pairs that don’t contain the U.S. dollar (USD) are known as cross-currency pairs or simply as the “crosses”. Crosses are also known as “minors.” The most actively traded crosses are derived from the three major non-USD currencies: EUR, GBP and JPY.