Forex and Crypto Basics: Pairs, Pips and 24-Hour Markets

Before you read: The Dollar, Oil and Gold: How Macro Markets Connect

What you will learn

• How currency pairs are quoted, and what a pip and a lot are.
• How spot forex, currency futures and the forex trading week differ.
• Basic facts about crypto markets: 24/7 trading, exchanges, stablecoins and the risks that come with them.

How are currency pairs quoted?

If EUR/USD is 1.0850, what does one euro cost?

A currency pair shows the price of the first currency, the base, in units of the second, the quote. EUR/USD at 1.0850 means one euro costs 1.0850 US dollars. If it rises to 1.0900, the euro has strengthened against the dollar. Major pairs include EUR/USD, USD/JPY, GBP/USD, USD/CHF, AUD/USD and USD/CAD.

A pip is the standard small unit of movement: 0.0001 for most pairs, and 0.01 for pairs quoted in Japanese yen. A move from 1.0850 to 1.0875 is 25 pips. Many brokers quote one more decimal place, a fraction of a pip.

A standard lot is 100,000 units of the base currency, with mini (10,000) and micro (1,000) lots. For EUR/USD, one pip on a standard lot is worth $10.

Where does forex trade?

If there is no single exchange, who sets the price?

Spot forex trades over the counter, between banks, dealers and brokers, rather than on one central exchange. Prices can differ slightly between providers. The market runs around the clock on weekdays, from Sunday evening to Friday afternoon US Eastern Time, passing from Asia to Europe to North America. Activity is often highest when London and New York hours overlap.

Currency futures, such as euro FX futures, trade on an exchange with standard contract sizes and expiration dates. The futures contract specifications lesson explains how to read their terms. Retail forex is regulated differently from country to country, and leverage limits differ too.

Currency quote diagram

Illustrative diagram constructed for teaching. Not real market data.

The diagram labels the base and quote currencies in a fictional EUR/USD quote, marks a 25-pip move, and shows a weekday forex clock moving through Asian, European and US hours beside a crypto clock that runs every day. It is constructed for teaching and is not real market data.

What is different about crypto markets?

What happens to a market that never closes?

Cryptocurrencies such as bitcoin and ether trade around the clock, every day of the year, on many exchanges worldwide. Some features stand out:

• No closing price. Many charts define a crypto “day” in UTC, but some exchanges use another time zone; check the chart’s settings before comparing daily figures.
• Many venues. Prices can differ between exchanges, and each has its own rules, fees and custody arrangements.
• Stablecoins. Tokens designed to track a currency such as the US dollar. They depend on the reserves and practices of their issuers, and some have lost their peg.
• Exchange-traded products. In the United States, spot bitcoin and ether exchange-traded products (ETPs) trade during stock market hours, and crypto futures trade on regulated futures exchanges.

What are the main risks to know about?

What can go wrong besides the price moving?

Both markets can move sharply, especially around major data releases and on thin weekend or overnight trading. Crypto adds risks that stock and futures traders may not be used to: exchange failures, hacks, lost access to wallets, and rules that are still changing. Losses on a leveraged position can exceed the money put in, depending on the product and venue. Tax rules for both markets vary by country and can be complex; ask a tax professional.

What this does not tell you about forex and crypto

• Whether any currency or token will rise or fall.
• Whether any broker, exchange or product is safe or suits you.
• The rules where you live. Some products are restricted in some countries.
• Nothing here recommends any trade, broker or asset.

Check yourself

1. EUR/USD moves from 1.0920 to 1.0880. How many pips is that, and did the euro strengthen or weaken? Hint: 0.0001 per pip.
2. What is one pip worth on a standard EUR/USD lot? Hint: 100,000 × 0.0001.
3. Name two risks in crypto that are not about the price. Hint: think about where the coins are held.

Last reviewed November 9, 2026. Spotted a mistake? Report an error.