Exchange rate is the ratio between two currencies, usually expressed as a digit value. For example, the exchange rate EUR / USD = 1.4329 means that the value of 1 EUR is equal to 1.4329 USD. If at the same time GBP / USD = 1.6321, is that one British pound can buy a $ 1.6321. In general, assuming that an exchange rate is xxx / yyy = N, then we can say that one unit of XXX units worth N yyy.
Assuming that exchange rates of the above examples are changed as follows EUR / USD = 1.4330, GBP / USD = 1.6322, it means that the prices of euro and sterling has increased by 1 pip against the U.S. dollar.
In most cases, Forex rates are presented as pairs, following EUR / USD 1.4329/32. This kind of representation of the relationship between the two currencies shows the selling rate and buying rate. The first value shows the price at which you can sell 1 EUR, while the second part of the quote inform you that for the purchase of EUR 1 will have to pay USD 1.4332.
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