Explore currency markets
A currency pair compares the value of one currency with another. Learn how to read that relationship and why the product used to trade it matters.
Reading a currency pair
The first currency in a pair is the base currency; the second is the quote currency. EUR/USD expresses the value of the euro in US dollars. A rise in the pair means the base currency has strengthened relative to the quote currency.
Exchanging currency and trading a derivative linked to an exchange rate are different activities. The product contract determines your exposure and how a position is settled.
What influences exchange rates
Interest-rate expectations, economic releases and demand for currencies can change an exchange rate. Markets can react to unexpected news as well as to scheduled announcements.
Product structure matters
A forex CFD settles a price difference under a contract; it does not give you a balance of the underlying currencies. Leverage increases both gains and losses relative to the margin committed. Spreads, financing and execution can affect the result.
Before choosing a product
Confirm whether the product is available for your circumstances and which entity provides it. Read its contract size, trading hours, costs, margin and execution terms. The examples on this page are an educational reference, not an available-product list.
Currency pairs
Use these examples to understand the market. Symbols are reference labels and can differ between platforms.
| Example symbol | Name | What it represents |
|---|---|---|
| EURUSD | Euro / US Dollar | The euro expressed in US dollars. |
| GBPUSD | British Pound / US Dollar | The British pound expressed in US dollars. |
| USDJPY | US Dollar / Japanese Yen | The US dollar expressed in Japanese yen. |
| AUDUSD | Australian Dollar / US Dollar | The Australian dollar expressed in US dollars. |
| USDCHF | US Dollar / Swiss Franc | The US dollar expressed in Swiss francs. |
Questions about this market
What are the base and quote currencies?
The base is the first currency named in a pair. The quote is the currency used to express the value of the base.
Does a forex CFD mean owning the currencies?
No. A CFD is a contract based on a price difference. It is different from exchanging and holding the currencies themselves.
Explore demo account options
Ask the Arrow Trade team about demo availability and setup.