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In forex trading, a “pair” refers to a pair of currencies that are being traded against each other. Each pair is made up of a base currency and a quote currency. For example, the EUR/USD currency pair consists of the Euro as the base currency and the US dollar as the quote currency. The exchange rate of a currency pair shows how much of the quote currency is needed to buy one unit of the base currency. Trading in currency pairs allows investors to speculate on the relative strength of one currency against another.

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