Why are currencies traded in pairs in the forex market?
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Currencies are traded in pairs because forex involves buying one currency while selling another at the same time.
Currencies are traded in pairs because the value of one currency is determined relative to another currency. For example, when trading USD/JPY, you are comparing the US dollar’s value with the Japanese yen. This makes it possible to identify whether one currency is strengthening or weakening against the other.
Currencies are traded in pairs because forex involves exchanging one currency for another. A currency pair shows the value of one currency compared to another.
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