The first currency (EUR) is the "basis" for the trade.
This is an act of utility or speculation . In the retail world, you "sell" a pair even if you don't own the base currency. You are essentially borrowing the currency to sell it now, hoping to "buy it back" later at a cheaper price. 3. The Hidden Cost: The Spread You’ll notice two prices: the Bid and the Ask . buying versus selling currency
AI responses may include mistakes. For financial advice, consult a professional. Learn more The first currency (EUR) is the "basis" for the trade
In the world of forex, buying and selling aren't two different actions—they are two sides of the exact same coin. When you "buy" a currency, you are simultaneously "selling" another to pay for it. You are essentially borrowing the currency to sell
often occurs during political instability, "safe haven" flows (selling risky currencies to buy Gold or USD), or when a central bank prints more money (inflation).
Here is the "deep dive" on how this exchange actually works: 1. The Dual Nature (The Pair) You never just buy "Euro." You buy the pair.