EURTRY definition

EUR/TRY is the exchange rate between the euro and the Turkish lira, showing how many lira one euro will buy. It is an exotic pair, and a turbulent one, with limited liquidity, broad spreads and a long history of large directional moves. Treat it as a high-risk instrument.

The euro is the base currency and the lira the quote currency, so a quote of 35.0000 means one euro is worth 35.0000 lira. A rising price means the euro is gaining on the lira, a falling price the reverse, though the multi-year drift has been steadily higher. You trade EUR/TRY as a forex CFD instead of converting into lira: go long if you expect the euro to strengthen, short if you expect it to weaken. Pips are the fourth decimal place, and your profit or loss is the pip move scaled by your position size.

EUR/TRY is driven far more by the lira side than the euro side. Turkey's persistent high inflation, the credibility of the CBRT's response and recurring political pressure on monetary policy keep the lira under strain, and the long-run trend has been one of depreciation. The European Central Bank's stance shapes the euro leg, but it is Turkish inflation and politics that produce the pair's outsized, sometimes violent, swings.