Currencies are always traded in pairs in the FOREX. The pairs have a unique notation that expresses what currencies are being traded. The symbol for a currency pair will always be in the form ABC/DEF.ABC/DEF is not a real currency pair, it is an example of a symbol for a currency pair.
There are many official currencies that are used all over the world, but there only a handful of currencies that are traded actively in the forex market. In currency trading, only the most economically/politically stable and liquid currencies are demanded in sufficient quantities. For example, due to the size and strength of the United States economy, the American dollar is the world's most actively traded currency.
A currency can never be traded by itself. So you can not ever trade a EUR by itself. You always need to compare one currency with another currency to make a trade possible.
Here are most traded currency pair symbols used in the Forex Market:
| Symbol | Full Form |
| AUD/JPY | Australian Dollar vs. Japanese Yen |
| AUD/USD | Australian Dollar vs. |
| CHF/JPY | Swiss Franc vs. Japanese Yen |
| DEM/CHF | Deutsche Mark vs. Swiss Franc |
| DEM/JPY | Deutsche Mark vs. Japanese Yen |
| EUR/CHF | Euro vs. Swiss Franc |
| EUR/GBP | Euro vs. British Pound |
| EUR/JPY | Euro vs. Japanese Yen |
| EUR/USD | Euro vs. |
| GBP/CHF | British Pound vs. Swiss Franc |
| GBP/DEM | British Pound vs. Deutsche Mark |
| GBP/EUR | British Pound vs. Euro |
| GBP/JPY | British Pound vs. Japanese Yen |
| GBP/USD | British Pound vs. |
| NZD/USD | |
| USD/ATS | |
| USD/BEF | |
| USD/CAD | |
| USD/CHF | |
| USD/CZK | |
| USD/DEM | |
| USD/DKK | |
| USD/ESP | |
| USD/FIM | |
| USD/FRF | |
| USD/HUF | |
| USD/ITL | |
| USD/JPY | |
| USD/NLG | |
| USD/NOK | |
| USD/SEK | |
| USD/SGD | |
| USD/ZAR | |
| XAG/USD | Silver vs. |
| XAU/USD | Gold vs. |
The listed currency pairs above look like a fraction. The numerator (top of the fraction or "left" of the / however you want to SEE it) is called the base currency. The denominator (bottom of the fraction or "right" of the /however you want to SEE it) is called the counter currency. When you place an order to buy the EUR/USD, for instance, you are actually buying the EUR and selling the USD. If you were to sell the pair, you would be selling the EUR and buying the USD. So if you buy or sell a currency PAIR, you are buying/selling the base currency. You are always doing the opposite of what you did with to base currency with the counter currency.
