Trade Forex Trading

What is a Currency Quote?

This lesson teaches how to read currency quotes and how markets display them.

FX currencies are traded in Pairs

The first and second currencies are known as base currency and quote currency respectively.

Forex Currency Quote Definition – Understand how currency quotes work.

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

The quote currency denotes the rate of exchange for purchasing the first currency using the second. It represents the counterpart in currency pair trading operations.

Like, if the EURUSD price is 1.2000, it means 1 EURO equals 1.2 US Dollars: if you want to buy 1 EURO, you need 1.2 US Dollars.

EUR USD

In this case, the EUR is the base currency while the USD is the quote currency.

Base Currency

Quote Currency

EURUSD
11.20000

The base is always 1 unit, the exchange rate quote is expressed in terms of the quote currency.

So, if the EUR USD exchange rate is 1.20000, it means that 1 Euro equals 1.2 AUS dollars. For every 1 Euro you own, you can purchase 1.2 dollars.

GBPUSD

In this case The GBP is the base currency & USD is the quote currency.

Base Currency

Quote Currency

GBPUSD
11.40000

The principal currency is consistently valued at one unit, while the quoted exchange rate reflects the value in terms of the counter currency.

So, if the GBPUSD exchange rate = 1.40000, that means that 1 GBP = 1.4 U.S. dollars. You could use 1 GBP to purchase 1.4 dollars.

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