Valuuttapareittain

Valuuttapareittain refers to the practice of quoting currency exchange rates as a pair of two different currencies. The first currency in the pair is known as the base currency, and the second is the quote currency. The exchange rate indicates how much of the quote currency is needed to purchase one unit of the base currency. For example, in the pair EUR/USD, the Euro is the base currency and the US Dollar is the quote currency. If the EUR/USD rate is 1.10, it means that 1 Euro can be exchanged for 1.10 US Dollars.

The way currencies are paired is standardized. Major currency pairs, often called "majors," involve the US Dollar paired with another major world currency, such as EUR/USD, USD/JPY, or GBP/USD. Minor currency pairs, also known as "crosses," do not include the US Dollar but involve two other major currencies, like EUR/GBP or AUD/JPY. Exotic currency pairs consist of one major currency and the currency of an emerging economy, such as USD/TRY (US Dollar and Turkish Lira).

Understanding currency pairs is fundamental for foreign exchange (forex) trading. Traders analyze these pairs to speculate on future exchange rate movements. The relative strength or weakness of the economies associated with each currency influences the pair's exchange rate. Factors such as interest rates, inflation, political stability, and economic growth can all impact the value of a currency pair. Traders aim to profit from buying a currency pair when they anticipate its value will rise and selling it when they expect its value to fall.