What is a rate? Let's talk about it in 60 seconds.
A Rate is the value of an asset in the market, which is determined by demand and the main asset on Forex is any currency.
The prices of currencies in a currency pair are related to each other, because while buying one currency, the trader simultaneously sells the other and vice versa. These two currencies form the exchange rate and are the subject of a trading operation.
A traditional currency pair record includes three-letter currency codes and consists of a base currency (it is indicated first and is on the left) and a quote currency (second and is indicated on the right).
For example, the US dollar is denoted as USD, and the euro as EUR. In the EUR/USD currency pair, the base currency is EUR, and the quoted currency is USD.
Video explanation
A Rate is the value of an asset in the market, which is determined by demand and the main asset on Forex is any currency.
The prices of currencies in a currency pair are related to each other, because while buying one currency, the trader simultaneously sells the other and vice versa. These two currencies form the exchange rate and are the subject of a trading operation.
A traditional currency pair record includes three-letter currency codes and consists of a base currency (it is indicated first and is on the left) and a quote currency (second and is indicated on the right).
For example, the US dollar is denoted as USD, and the euro as EUR. In the EUR/USD currency pair, the base currency is EUR, and the quoted currency is USD.
Video explanation
