What is EUR/USD? - Definition & Explanation

Definition

The most traded currency pair globally, representing the euro against the US dollar.

EUR/USD Explained

EUR/USD is the most liquid and widely traded currency pair, accounting for approximately 20-25% of all forex trading volume. It typically has the tightest spreads (0.1-1.0 pips).

Related Terms

Currency Pair

Two currencies quoted together showing their exchange rate (e.g., EUR/USD).

Spread

The difference between the bid and ask price, representing the broker's primary cost to the trader.

EUR/USD - Frequently Asked Questions

It represents the two largest economies, has the tightest spreads, highest liquidity, and reacts clearly to economic news.

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