For example, the US Dollar might have an exchange rate of 1.20 to the Euro. That means it would take 1.20 Dollars to equal 1 Euro.
 Exchange Rate Quotes
The forex market trades is currency pairs. These pairs use a standardized quote structure of Base/Quote. Those pair quote can be thought of in terms of how much of the Quote currency it takes to make one unit of the Base currency.
Putting this together, EUR/USD is the number of U.S. Dollars it takes to equate to 1 Euro.
 Common Terms