What's Base Currency and Quote Currency? - What is Base Currency? - What is Quote Currency?

The first currency in a forex currency pair is known as the base currency. The base currency in a currency 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 and US Dollar is the quote Currency

Base Currency: What is Base currency? This is the first currency in a pair (EUR). The Base is equivalent to 1 unit of the first currency.

Quote Currency: What is Quote currency? This is the second currency in a pair (USD). The Quote shows the value of the base currency in relation to the second currency.

Example of EURUSD Currency Quote - What is a Trading Currency Quote?

EURUSD is one of the major forex pair in FX, therefore we shall use this EURUSD forex pair for our example:

EURUSD

• Base Currency - EUR

This is the first currency in a pair (EUR). The Base is equivalent to 1 unit of the first currency.

• Quote Currency - USD

This is the second currency in a pair (USD). The Quote shows the value of the base currency in relation to the second currency.

If EURUSD currency exchange rate quote = 1.2000

It means the ratio of EUR : USD = 1 : 1.2000

Therefore it means 1 Euro = 1.2000 US dollars

Example of currency exchange rates on MT4 Software

Forex Currency Quote - What is Base Currency and Quote Currency?

EURUSD

In this case The EUR is the base currency and USD is the quote currency.

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.