What is a Currency Quote?
If you want to learn how to read and understand a currency quote this tutorial will explain how currencies are quoted in the market.
Forex currencies are traded in Pairs
The first and second currencies are known as base currency and quote currency respectively.
Forex Currency Quote Definition - Understanding Currency Quotes
For a Currency Quote - There is a Base Currency and Quote Currency
Base Currency is one unit of the first currency that is being traded
Quote currency is the exchange rate for the second currency that is quoted when a trader want to buy the first currency using the second currency - which is called the quote currency.
For Example if EURUSD Currency Quote is 1.2000 it means 1 EURO is equivalent to 1.2 US Dollars - to buy 1 EURO as a trader you would need to have 1.2 US Dollars.
EURUSD
In this case The EUR is the base currency & USD is the quote currency.
| Base Currency | Quote Currency |
| EUR | USD |
| 1 | 1.20000 |
The base is always 1 unit, and the exchange rate quote is in terms of the quote currency.
Therefore, if exchange rate of EURUSD = 1.20000, it means 1 Euro = 1.2 US dollars. So for each 1 Euro you have, you can buy 1.2 dollars.
GBPUSD
In this case The GBP is the base currency & USD is the quote currency.
| Base Currency | Quote Currency |
| GBP | USD |
| 1 | 1.40000 |
The base currency is always 1 unit, and the exchange rate quote is in terms of the quote currency.
Therefore, if exchange rate of GBPUSD = 1.40000, it means 1 GBP = 1.4 US dollars. So for every 1 GBP you have, you can buy 1.4 dollars.
