Currency pairs: base and quote
Currencies are quoted in pairs, like EUR/USD = 1.0850. The first currency (EUR) is the base; the second (USD) is the quote. The price tells you how many units of the quote currency one unit of the base costs: one euro costs 1.0850 dollars.
- One US dollar costs 17.85 South African rand.
- If USD/ZAR rises to 18.20, the dollar got stronger and the rand weaker.
- Buying USD/ZAR means you expect the dollar to rise against the rand.
Questions people ask
Is forex trading legal in Nigeria?
Trading through brokers is common, but rules on foreign brokers and moving money abroad are strict. Check the SEC Nigeria and Central Bank of Nigeria rules and use a broker that is properly authorised.
How much does it cost to trade forex?
Mainly the spread, plus commission on some accounts and swap (overnight interest) if you hold trades overnight. See Order types and trading costs.
Can I trade forex on my phone?
Yes. MetaTrader 4, MetaTrader 5, cTrader and most broker apps work on Android and iPhone.
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Educational content only, not financial, investment or tax advice. Trading forex and CFDs carries a high risk of losing money. Look up any term in the trading glossary.