Foreign Exchange A Practical Guide To The: Fx Markets Pdf 2021

If the base currency has a lower interest rate (e.g., EUR in EUR/USD), forward points are negative.

Currencies are always traded in pairs. The first currency is the "base" and the second is the "quote." For example, in EUR/USD, you are measuring how many U.S. Dollars are needed to buy one Euro. If the base currency has a lower interest rate (e