A currency pair is a quotation that shows the relative value of one currency against another in the foreign exchange (forex) market.

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It consists of two currencies: the first is called the base currency and the second is the quote currency. The currency pair indicates how much of the quote currency is needed to purchase one unit of the base currency. For example, in the EUR/USD pair, EUR is the base currency and USD is the quote currency; if the pair is quoted at 1.10, it means one euro is worth 1.10 US dollars.

Currency pairs are traded in the forex market, and trading always involves buying one currency and selling the other. The value of a currency pair fluctuates based on economic, political, and market factors, reflecting the changing strength of one currency relative to the other.

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