# Currency Pair

*Markets & Instruments — Finicade finance glossary*

A currency pair quotes how much of the quote currency one unit of the base currency buys — in EUR/USD at 1.10, one euro costs $1.10. Every FX trade is simultaneously long one currency and short the other, which is why there's no such thing as 'cash' in FX, only relative positions. Majors involving the dollar carry the tightest spreads; crosses without it are usually executed through two dollar trades under the hood.

**Also known as:** FX pair, EURUSD, base and quote currency

**Related terms:** [Exchange Rate](https://finicade.com/glossary/exchange-rate), [Foreign Exchange Market (Forex)](https://finicade.com/glossary/foreign-exchange-market), [Carry Trade](https://finicade.com/glossary/carry-trade), [Purchasing Power Parity (PPP)](https://finicade.com/glossary/purchasing-power-parity), [Pip](https://finicade.com/glossary/pip)

Source: https://finicade.com/glossary/currency-pair