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Understanding a currency pair
On the foreign exchange market, one currency is traded for another. A pair such as EUR/USD tells you how many dollars (the quote currency) it takes to buy one euro (the base currency). Buying the pair means expecting the euro to rise against the dollar; selling it means expecting the opposite.
Every pair has two prices: the bid, at which you sell, and the ask, at which you buy. The gap between them is the spread, a cost paid on every trade.
The pip is the unit used to measure a price move: 0.0001 for most pairs, 0.01 for pairs against the yen. On EUR/USD, going from 1.0841 to 1.0795 is a move of 46 pips.
General educational content: it is neither investment advice nor a recommendation.