How does currency trading like Forex work exactly?
I understand that you buy currency in "lots" and depending if they go up or down in value you make in profit or loss.
I just don’t understand why the currencies are paired like "EUR/GBP".
Can someone help me understand the actual process taking place when people trade currency?
In simple word:
EURGBP = you have / use EUR to buy GBP, the exchange rates is 1 EUR = xxx GBP