For stock investors, currency trading (a.k.a. Forex) can feel tricky—mostly because its structure and mechanics are not as straightforward as those of other financial instruments. And that’s okay. If you’ happen to be new to this space, we will cover the essentials while focusing on the topic of this article, which is the EUR/USD. First, a few basics. As you notice, currencies are stated in pairs. The first currency is the Base currency, while the second is the Quote currency. So, when looking at the EUR/USD, the EUR is the base, while the USD is the quote. But here’s an easier way to view it: If the EUR/USD has a price of 1.0770, then 1 Euro = 1.0770 US dollars ($1.07). Forex doesn’t move in cents the way stocks do. Its moves, which are much smaller, are measured in “percentage in points,” aka “pips,” which are fractions of a currency…
