Monday, June 17, 2024

Quote currency

What is quote currency?

The quote currency is the second currency in the currency pair.

is used to determine the value of the base currency.

In the foreign exchange market, currency unit prices are quoted in currency pairs.

Base currency , also known as tTrading currency , is the first currency to appear in the currency pair quotation.

The second part of the

currency quote is called the quote currency or the counter currency.

Base and Quote Currency

For example, if you look at the EUR/USD currency pair, the EUR will be the base currency and the USD will be the quote currency.

The exchange rate of a currency pair reflects how much of the quote currency is required to buy (or sell) one unit of the base currency.

As the exchange rate of a currency pair increases, the value of the quote currency decreases.

In Forex, a currency pair is written XXX/YYY or simply XXXYYY.

Here, XXX is the base currency, and YYY is the quote currency.

EUR/USD and USD/CAD are two examples of this format.

The abbreviations used in currencies are specified by the International Organization for Standardization (ISO). These codes are provided in the standard ISO 4217.

Currency pairs use a code consisting of the three letters to represent a specific currency.

The currencies of the displayed currency pair are usually separated by slash characters. The slashes are sometimes removed, but the meaning is the same.

If you want to learn more foreign exchange trading knowledge, please click: Trading Education.

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