For instance, if you have taken a position in a specific currency pair expecting it to move higher, an unfavorable event can crash
the prices of the currency pair, giving you no time to cover your losses.
Also, when
the price of a currency pair is mentioned, it contains both the bid and the ask price, i.e. the price at the which the pair can be bought and the price at which it can be sold.
The prices of currency pairs are affected by the world economy and multiple other factors.
In a similar way, there are many currency pairs that are actively traded all across the globe and it is the movement of
the price of these currency pairs that constitute the trigger for currency trading.