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A currency pair, also known as a forex pair or FX pair, is a pair of currencies that are traded in the foreign exchange market. Each currency pair consists of a base currency and a quote currency. The value of a currency pair is determined by the exchange rate between the two currencies, which reflects the relative strength or weakness of each currency.

Currency pairs are typically quoted as a price, representing the amount of quote currency needed to purchase one unit of the base currency. For example, in the EUR/USD pair, the price might be 1.2000, meaning that one euro is worth 1.2000 US dollars.

Currency pairs can be categorized into two main types: major currency pairs and minor currency pairs. Major currency pairs involve the most traded and liquid currencies, such as the EUR/USD, USD/JPY, and GBP/USD. Minor currency pairs involve less traded currencies and are generally less liquid.

Currency pairs are traded on various financial markets, including the interbank market, the retail forex market, and the over-the-counter (OTC) market. The trading of currency pairs is facilitated by financial institutions, such as banks, brokerage firms, and online forex brokers.

Currency pairs are influenced by a variety of factors, including economic indicators, geopolitical events, and market sentiment. Traders and investors use various strategies and tools to analyze and trade currency pairs, with the goal of profiting from fluctuations in exchange rates.