A Currency Pair is a price quote of the exchange rate for two different currencies traded in the foreign exchange market. Currencies are always quoted in pairs, such as USD/JPY or EUR/GBP, because you can't buy or sell a single currency on its own. The first currency listed is called the base currency and the second one is called the counter or quote currency. When you see a price like 1.2345, it means that 1 US dollar can be exchanged for 1.2345 Japanese yen.The most common type of order placed when trading forex is known as a "limit order." A limit order allows traders to specify how much they're willing to pay (or sell their position for) and at what price they would like their trade executed.For example, if someone thinks that EUR/USD will appreciate in value and wants to buy euros, they may place a limit buy order at 1.2000 with an initial margin requirement of 10%. This would mean that their broker will only execute the trade if EUR/USD reaches 1.2000 or higher (the trader's stop loss). Conversely, if someone believes that USD/JPY will depreciate in value and wants to sell dollars, they might place a limit sell order at 113 with an initial margin requirement of 10%. This would mean that their broker will only execute the trade if USD/JPY falls below 113 (the trader's take profit).
