What Does Base Currency and Quote Currency Mean?
Currency Base and Currency Quote Price Meaning
Example of currency exchange rates quotes on MT4 Software
Forex Currency Base and Currency Quote Price Meaning Explained
Forex Currency Quotes Explained
In a Forex Currency Quote - The first currency in a currency pair is known 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 known as the quote currency.
For Example EURUSD - EURO is the base currency and 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 equivalent to 1 unit of the first currency.
Quote Currency: What is Quote currency? Quote currency is the second currency in a pair (USD). The Quote currency shows the value of the base currency in relation to the second currency.
Example of EURUSD Forex Trading Currency Quote - What is a Price Currency Quote?
EURUSD forex pair is one of the major currency pairs in Forex, hence we shall use this EURUSD currency 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 currency quote - second currency.
If EURUSD currency exchange rate forex 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 - Currency Base and Currency Quote Example Explained
In this case The EUR is the base currency & USD is the quote 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 quote currency.
Hence, if exchange rate of EURUSD = 1.2000, it means 1 Euro = 1.2 USA dollars. So for every 1 Euro you have, you can buy 1.2 USA dollars.
