Forex glossary

EUR/USD

EUR/USD states the price of one euro in US dollars: EUR is the base and USD the quote currency. It is among the most actively traded pairs, but spreads and price ranges depend on provider and period. No fixed daily ATR or universal minimum spread applies.

Illustrative example

How does it work in practice?

In a hypothetical EUR/USD model, 2,000 EUR at 1.1000 is valued at 2,200 USD. A rate change of 0.0010 USD per EUR changes its value by 2 USD before fees.

A case to work through

A small move and a fee

Model: long 1,500 EUR; fills are 1.0800 and 1.0810 USD/EUR, with a separate total fee of 2 USD.

  1. Price P/L is 1,500 × 0.0010 = 1.50 USD.
  2. After the fee, net P/L is −0.50 USD.

What follows? Compare net results and include each cost once.

Example boundary: Fills already include spread; financing is excluded.

A useful distinction

EUR/USD / EUR/GBP

EUR/GBP prices the euro in GBP; EUR/USD prices it in USD.

Check your understanding

Move from price P/L to net P/L.

Model: long 2,000 EUR, fills 1.0800 and 1.0820 USD/EUR, separate fee 3 USD. What is net P/L?

Show the answer and explanation

+1 USD

4 USD price P/L minus the 3 USD fee.

Pair units and result currency

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Sources and documentation

The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.

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