In the forex market, currencies are always quoted in pairs. The value of a currency is determined by comparing it to another currency.
The following are examples of currency pairs: USD/JPY, EUR/USD, USD/CAD, AUD/CAD...
In a currency pair, the first currency is called the "base currency", and the second is called "the quote or counter currency". For example, in the EURUSD currency pair, Euro is the base currency and USD is the quote currency.
The base currency is always equal to one monetary unit. If the EURUSD quote is equal to 1.3, this means that one Euro is equal to 1.3 Dollar.
Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.