Currencies at the forex market are coupled in pairs to trade against each other. It is because traders are buying one currency and selling another at the same time, so to make the trading process easier and faster, whichever two currencies a trader wants to trade are identified in a pair such as USD/JPY. Currency pairs are actually a quotation which represents how much a unit of currency will cost in terms of the other currency. For example, a currency pair in forex looks like this “GBP/EUR 1.2050”, here the first currency is called the base currency and the second one is called the quote currency. It is a quotation which means that the base currency (GBP £1) will be bought for this much quote currency (1.2050 Euros). These short forms (GBP/EUR) are called the ISO currency code which identifies a currency in the forex market.