The pair, namely the "currency pair", means the currency of one country, expressed in the currency of another country. The value of one currency against another currency is also determined by the economic situation comparison of that country. So when we say EUR / USD, it represents the value of EUR against USD. Here, EUR represents the European Union currency, ie EURO, and USD represents the US currency. The EUR is called BASE currency here, and the USD is called the counter currency.
In financial markets, parities are classified as major, minor and exotic parities. The most traded are considered Major; they represent 80% of the trading transactions.
MAJOR PARITY refers to parities consisting of two major currencies. Major currencies denoting countries or unions with high economic size; It is American Dollars (USD), Euro (EUR), British Pound (GBP), Australian Dollars (AUD), Canadian Dollars (CAD), Swiss Franc (CHF) and Japanese Yen (JPY). At the price of major parities; Although one of them is more dominant, both currencies have a strong effect.
The most traded Major Parities: