Stocks and bonds can be sold in the stock market. In other words, they can convert their security into money. However, one is already buying and selling money on the Forex market. How does the trading process work?

In the Forex market, currencies are bought and sold simultaneously. In other words, one exchanges one currency for another. Therefore, currency prices are always quoted in pairs. Price represents the union of the first currency and the second currency that one is willing to pay. The base currency is always used when the price is quoted in terms of the first currency. The counter currency is the other currency mentioned in the pair.

As an example, in a USD/EUR pair, the United States Dollar is the base currency, while the Euro is the counter currency.