Trading instruments on Forex are represented as currency pairs. It is important to understand how to read the Forex pairs.

The first currency is called a base currency and the second one is a quoted currency. The number shows how many units of the quoted currency are needed to buy the base currency.

For example, if EUR/USD=1.0555, it means that 1 Euro costs 1.0555 Dollars. In this case, Euro is the base currency and Dollar is the quoted currency. So, if you open buy order for EUR/USD on Forex, you actually buy Euros for Dollars.

Knowing how to read the Forex quotes is one of the basics of the Forex market, you can read more about it in the official website of XM.