The first currency listed first is the base currency and the value of the base currency is always 1.
A quote of EUR / USD 1.2100 means that one 1 Euro is equal to 1.2100 units of U.S. Dollars. When that number increases, it means the Euro is appreciating while the U.S. Dollar is depreciating and vise versa.
Let's look at another example. USD / JPY is trading at 124.00. It means 1 dollar is equal to 124 units of Japanese Yen. An increase in the number means that U.S. Dollar is appreciating while the Japanese Yen is depreciating and vis versa.
In other words, if a currency quote goes higher, that increases the value of the base currency. A lower quote means the base currency is weakening.
Let's look at another example. USD / JPY is trading at 124.00. It means 1 dollar is equal to 124 units of Japanese Yen. An increase in the number means that U.S. Dollar is appreciating while the Japanese Yen is depreciating and vis versa.
In other words, if a currency quote goes higher, that increases the value of the base currency. A lower quote means the base currency is weakening.
USD/CAD 1.2392 1.2397
This chart tells us that we can buy one American dollar for 1.2397 Canadian dollars, or sell one American dollar for 1.2392 Canadian dollars. The most commonly traded currencies pairs are the 'Majors' – GBP/USD, EUR/USD, AUD/USD, USD/JPY, USD/CHF, and USD/CAD.
This chart tells us that we can buy one American dollar for 1.2397 Canadian dollars, or sell one American dollar for 1.2392 Canadian dollars. The most commonly traded currencies pairs are the 'Majors' – GBP/USD, EUR/USD, AUD/USD, USD/JPY, USD/CHF, and USD/CAD.
Currencies are traded in lots of various sizes. The standard lot is 100,000 units of the base currency. A unit is the currency name e.g. one unit of US dollars is the dollar. So a standard lot of US currency is worth $100,000. FOREX trades can have lots of various sizes - a mini lot is 10,000 units, but the most trades are done using standard lots.
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