KoboFX

Currency Pairs: How Money Is Priced in Quotes

SchoolPreschool01/01/2026
Portrait of Iriss Lee
By Founder & Editor3 years trading forex. Writes every KoboFX guide and review. Full profile →

Risk warning: Forex is risky. This is education, not financial advice. You can lose money. Only learn with money you can afford to lose.

Forex never trades one currency alone. It always trades two together. This is called a pair.

You buy one currency and sell the other at the same time.

EURBASE — firstyou buy or sell thisoneUSDQUOTE — secondit shows the price1 euro = 1.08 dollars/
EUR is the base — the one you buy or sell. USD is the quote — it shows the price. At 1.08, one euro costs 1.08 dollars.

Base and quote

Every pair has two parts:

  • Base — the first currency. You buy or sell this one.
  • Quote — the second currency. It shows the price.

Example: EUR/USD = 1.08

  • EUR is the base.
  • USD is the quote.
  • Price 1.08 means 1 euro costs 1.08 dollars.

Some pairs quote exotic currencies. If USD/ZAR = 18.50, then 1 dollar costs 18.50 rand.

USDbase — 1 dollar→ZARquote — the priceR18.50 per $1
USD is the base, ZAR is the quote. At 18.50, one dollar costs 18.50 rand. Read the quote side and you always know the price.

Bid and ask — two prices

Your broker shows two prices:

  • Bid — what the broker pays you if you sell.
  • Ask — what the broker charges you if you buy.

The small gap between them is the spread. It is the broker's cost.

Example:

  • Bid 1.0800, Ask 1.0802 — spread is 2 pips.

You will learn pips in the next lesson.

Why pairs matter for beginners

You do not need to trade exotic currencies. Most beginners start with major pairs like EUR/USD or GBP/USD. They move a lot and have low cost.

Exotic pairs (for example USD/ZAR or USD/NGN) can move sharp with higher cost. Many beginners focus on EUR/USD during London hours (about 8am–5pm WAT / 8am GMT) because the market is busy then.

Europe / USLondon / New YorkEUR/USDGBP/USDBusy window: 8am–5pm WAT
Begin with busy majors: EUR/USD and GBP/USD move most in London 8am–5pm WAT (8am GMT). Exotic pairs can swing sharp with higher cost — learn on majors first.

What comes next

Next: Pips and Lots: The Two Numbers That Control Your Risk — how to measure moves and size.

For how to pick where to trade these pairs, see The Complete Guide to Choosing a Forex Broker (2026).

Bottom line: Learn base and quote and trade EUR/USD at 1.08, not guesswork, or you risk buying the wrong direction. Related guides: Choosing a Forex Broker.