In the Forex market, currencies are always traded in pairs. Each pair consists of two three-letter abbreviations—for example, EUR/USD (Euro / U.S. Dollar).
The first currency is the base currency
The second currency is the quote currency
The exchange rate tells you how much of the quote currency is needed to buy one unit of the base currency.
For example, if EUR/USD = 1.31, it means 1 Euro = 1.31 U.S. Dollars
Currency pairs are the foundation of forex trading, and understanding how they work is essential for reading price charts and executing trades.