Base and quote currency
In a pair such as EUR/USD, the first currency is the base currency and the second is the quote currency. The quoted price tells you how much of the quote currency corresponds to one unit of the base currency.
If the quoted price rises, the base currency has strengthened relative to the quote currency. If it falls, the base currency has weakened relative to the quote currency.
Major, minor and less-liquid pairs
Pairs involving heavily traded currencies usually have deeper liquidity and tighter transaction costs than less-active pairs. Less-liquid markets can have wider spreads and larger price gaps.
The label attached to a pair matters less than the underlying liquidity, trading hours, policy environment and cost of accessing it.
The pair changes the risk
Two currency pairs can respond very differently to the same global event. Commodity exposure, interest-rate policy, political risk and local market structure can all affect the relationship.
Comparisons should therefore look at the pair itself rather than treating all forex exposure as interchangeable.
General information only. Investment products can lose value, and terms, fees and regulation can change.