Valutapaar

A valutapaar, or currency pair, is a pair of currencies quoted together in the foreign exchange market. In a valutapaar, one currency is the base currency and the other is the quote currency. The price of the pair shows how much of the quote currency is needed to buy one unit of the base currency.

For example, EUR/USD = 1.1050 means one euro costs 1.1050 US dollars. USD/JPY = 150.20 means one US dollar is worth 150.20 Japanese yen. Quotes typically include a bid price (the price at which the market is willing to buy) and an ask price (the price at which the market is willing to sell); the difference is called the spread. The smallest price move is a pip, usually 0.0001 for most pairs and 0.01 for pairs involving the Japanese yen.

Valutapaar are categorized by liquidity and usage. Major pairs, which include the US dollar like EUR/USD, USD/JPY, GBP/USD, USD/CHF, AUD/USD, USD/CAD, and NZD/USD, are highly liquid with tight spreads. Cross pairs (pairs without the US dollar, such as EUR/GBP) are less liquid. Exotic pairs (for example USD/TRY or USD/INR) tend to have wider spreads and greater volatility.

Interpreting movements: a rising price means the base currency is strengthening against the quote currency, while a falling price implies a weakening base currency. Valutapaar are traded in a 24-hour market across major financial centers, enabling continuous price discovery and hedging opportunities.