What Does Base Currency & Quote Currency Mean?
Currency Base and Currency Quote Price Meaning
Example illustration of the currency exchange rates quotes on MetaTrader 4 Platform
FX Currency Base and Currency Quote Price Meaning Explained
FX Currency Quotes Examples 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 fx 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 & 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's Quote currency? Quote currency is the second currency in a pair (USD). The Quote currency shows the value of the base currency relative to the second currency.
Explanation 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:
EUR USD
- 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 relative to the currency quote - second currency.
If EURUSD currency exchange rate forex quote = 1.2000
It means the ratio of One EUR : USD exchange rate = 1 : 1.2000
Hence it means 1 Euro = 1.2000 America 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 expressed in terms of the quote currency.
Hence, if exchange rate of EUR USD = 1.2000, it means 1 Euro = 1.2 America dollars. So for every 1 Euro you've, you as a trader can buy 1.2 America dollars.
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