Currency Pair

A currency pair is the quotation of two currencies where one is traded against the other, forming the basis of all forex trading and IB commission calculations.

What it means in practice

A currency pair represents the exchange rate between two currencies. In forex trading, every transaction involves simultaneously buying one currency and selling another. The first currency listed is the base currency, and the second is the quote currency. For example, in EUR/USD, the euro is the base and the US dollar is the quote. The price indicates how much of the quote currency is needed to buy one unit of the base currency.

Currency pairs are classified into three categories: majors (involving USD and high-liquidity currencies like EUR, GBP, JPY), minors or crosses (two major currencies excluding USD), and exotics (a major currency paired with an emerging market currency). Each category has different spread profiles, liquidity levels, and volatility characteristics that affect both trading costs and IB rebate structures.

For introducing brokers and forex affiliates, currency pair selection by referred traders directly impacts commission earnings. Traders active on major pairs generate consistent trading volume with tighter spreads, while exotic pair traders may generate higher per-trade spread-based commission but with lower frequency. Understanding pair dynamics helps IBs evaluate the quality and profitability of their referral traffic.

How Currency Pair works across industries

See how currency pair is applied in the verticals Track360 supports, from qualification logic and payout structure to the operational context behind each model.

Forex

Currency Pair in Forex partner and IB models

Forex brokers typically offer 40-80+ currency pairs. [Lot-based commissions](/glossary/lot-based-commission) for IBs are often uniform across majors but may vary for exotics due to wider spreads and lower liquidity. Some brokers offer tiered IB rates where higher-volume pairs carry different rebate structures.
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Prop Trading

Currency Pair in prop trading acquisition flows

Prop firms allow traders to trade currency pairs during [evaluation phases](/glossary/evaluation-phase), but may restrict exotic pairs due to [slippage](/glossary/slippage) and volatility risks. [News trading restrictions](/glossary/news-trading-restriction) are often pair-specific, targeting high-impact currency events like NFP for USD pairs or ECB decisions for EUR pairs.
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How Track360 handles this

Track360 enables forex brokers to configure IB commission structures that differentiate by instrument type. Operators can set different lot-based or spread-based rebates for major, minor, and exotic currency pairs within the same partner agreement.

FAQ

Frequently Asked Questions

Common questions about currency pair, how it works in affiliate programs, and where it shows up across Track360's supported verticals.

A currency pair is two currencies quoted together, showing the exchange rate between them. The first currency (base) is bought or sold against the second currency (quote). EUR/USD = 1.10 means 1 euro equals 1.10 US dollars.

Related Terms

Forex & IB

Spread

Forex
Read Definition

The spread is the difference between the bid (sell) and ask (buy) price of a financial instrument, serving as a primary revenue source for Forex brokers and a basis for spread-based affiliate commissions.

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Forex & IB

Lot-Based Commission

Forex
Read Definition

Lot-based commission is a broker affiliate or IB payout model where partners earn a fixed amount for each traded lot generated by their referred clients.

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Forex & IB

Introducing Broker (IB)

Forex
Read Definition

An Introducing Broker is a partner who refers new traders to a Forex or CFD brokerage in exchange for ongoing commissions, typically calculated on the trading volume or revenue generated by those referred clients.

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Forex & IB

Trading Volume

Forex
Read Definition

Trading volume is the total amount of trading activity -- measured in lots or monetary value -- generated by a trader or group of traders over a given period.

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Forex & IB

Pip Value

Forex
Read Definition

The monetary value of a single pip movement in a forex trade, which varies by currency pair, lot size, and account currency. Pip value is used as a basis for calculating IB commissions in spread-based and pip rebate models.

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Forex & IB

Leverage

ForexProp Trading
Read Definition

Leverage allows traders to control a larger position size with a smaller capital outlay, amplifying both potential gains and losses proportionally.

Forex & IBRead More β†’
From the Blog

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