LESSON 6
 

CURRENCY PAIRS EXPLAINED

 

Lesson Overview
 

This lesson explains how forex pairs actually work and why currencies are always traded relative to one another.

Many beginners look at charts without understanding what they are truly analysing. Forex is not simply about whether a currency is strong or weak. It is about comparison.

Understanding this concept helps you begin seeing relationships between economies, currencies, and price movement.

Key Concepts Covered
 

• Base and quote currencies • Relative strength • Currency comparison • Why pairs move differently • Correlation between pairs

What You Should Take Away
 

Forex is a market built on relative strength. You are always comparing one currency against another.

Workbook Focus
 

Focus on:

• Understanding how pairs are structured • Recognising currency relationships • Observing similarities between correlated pairs