What Does Base Currency and Quote Currency Mean?
Base Currency and Quote Currency Price Meaning
Example of currency exchange rates quotes on MT4 Platform Software
Forex Currency Base and Quote Currency Price Meaning Explained
Quote Currency is also known as Quote Currency
FX Currency Quotes Explained
In a Currency Quote - The first currency in a forex pair is referred to as the base currency. The base currency in a forex quote is the currency against which exchange rate is quoted when a trader wants to buy this first currency using the second currency which is referred to as the quote currency.
For Example EURUSD - EURO is the base currency & US Dollar is the quote Currency
Base Currency: What is Base currency? Base currency is the first currency in a pair (EUR). The Base currency is equal to 1 unit of the first currency.
Quote Currency: What is Counter currency? Counter currency is the second currency in a pair (USD). The Counter currency shows the value of the base currency in relation to the second currency.
Quote Currency is also known as Quote Currency
Example of EURUSD Currency Quote - What is a Price Currency Quote?
EURUSD currency pair is one of the major forex pairs in FX, hence we shall use this EURUSD forex pair for our example:
EURUSD
- Base Currency - EUR
Base Currency is the first currency in a pair (EUR). The Base is equal to 1 unit of the currency base - first currency.
- Quote Currency - USD
Quote Currency is the second currency in a pair (USD). The Quote shows the value of the base currency base in relation to the Counter currency price - second currency.
If EURUSD currency exchange rate fx quote = 1.2000
It means the ratio of EUR : USD exchange rate = 1 : 1.2000
Hence it means 1 Euro = 1.2000 USA dollars
EURUSD - Base Currency and Quote Currency Example Explained
In this case The EUR is the base currency and USD is the counter currency.
| Base Currency | Quote Currency |
| EUR | USD |
| 1 | 1.20000 |
The currency base is always 1 unit, and the exchange rate quote is in terms of the counter currency.
Hence, if exchange rate of EURUSD = 1.2000, it means 1 Euro = 1.2 USA dollars. So for each 1 Euro you have, you can buy 1.2 USA dollars.
