How to interpret pairs in forex? In the currency market currencies are the main protagonists and are expressed in pairs. This is not accidental and is because forex currencies are bought and sold on another, because in the couple currencies are a team that complement one another.

This type of buying and selling currencies in forex is due to the performance of economies generally fluctuates, and movements in the currency market are complementary when there is the fall of a currency with the rise of the other.

The forex currency pair is comprised of a base currency and quoted currency, if you believe that a certain couple will raise then you must buy this couple because we believe that the currency will raise with respect to the currency quoted which devalue.
To operate in forex position you must open a “Long” (long position), for the purchase, or else if you want to sell it to open a “Short” (short position). What means opening position “Long” and “Short”?. If you buy a pair, what we are doing is buying cheap because we believe that the value of the currency will raise so we´ll sell it when its value exceeds the purchase. So the investor believes that the base currency is going to be valued regard to the currency quoted. This is an open position “Long.”

If we make the opposite transaction it will be doing in forex will open a position “Short”. What makes the investor is to buy high because it believes that the currency will fall and close the position where it has a lower value when it´s sold. In this way the investor thinks the base currency to depreciate versus the currency quoted.

To carry out such operations in forex will have to have a broad knowledge of market conditions and recent movements in exchange rates otherwise any decision can be a bad one.