CAN SOMEONE EXPLAIN THE DIFFERENCE BETWEEN EUR/USD & USD/EUR. ARE THEY THE SAME AND WHAT MAKES THEM DIFFERENT? I’m a day one beginner in FOREX btw THANK YOU.
It is based on quotes which is done in currency pairs. When you sell a currency, you have to buy something in return, hence they are quoted in pairs.
For example, when you are buying smartphone, you are selling dollar to get that. This is somewhat similar in forex, in which you are selling EUR to get USD, you are using the EUR/USD currency pair, or USD/EUR depending on which way you want it.
They are just simply a quote. Using EUR/USD is expressing how much 1 EUR is worth in USD while using USD/EUR is expressing how much 1 USD is worth in EUR.
You can read more in babypips school course.
The currency mentioned on the left will always be the base currency.The one on the right is the quote.