What is a quote currency?
The quote currency in forex refers to the second currency listed in a currency pair. In a currency pair, the first currency is called the base currency, and the second currency is the quote currency.
For example, in the pair EUR/USD, the euro is the base currency, and the US Dollar is the quote currency. The quote currency represents the value of the base currency in terms of the quote currency. Understanding the quote currency is essential for traders to analyze exchange rates and make informed decisions in the forex market.
Example of a quote currency
In the currency pair EUR/USD, the quote currency is the USD. If the current exchange rate for EUR/USD is 1.20, it means 1 euro is equivalent to 1.20 US dollars. In this example, the quote currency is the US Dollar, and the base currency is the Euro.