Every country has its own official currency, and its economy is based on it. For establishing any trading relationship between countries, it is needed to have a good currency relation, with positive correlation between the two currencies. When it is needed to convert a certain amount of a currency to another, Exchanges come into light and this is how anyone can get the currency they want. There are many geopolitical and economic reasons which influence the change in the currency pair prices.

Forex market, which is an abbreviation for foreign exchange, is the global market for fiat currency pairs trading. It is the most liquid market, with a $5 trillion volume transaction daily. The exchange rate between a currency pair is defined by many factors of both countries they represent. When you trade Forex pairs, you are speculating whether the price of the main currency will go up or down. So in the EUR/USD pair, if you think that EURO will rise against the US dollar, you should buy the pair, or go long as it is said differently. And vise versa if you think that the value of EUR will decrease against the US dollar.