Quote Currency

The quote currency is the second currency listed in a currency pair in the foreign exchange (Forex) market. It represents the amount of that currency needed to buy one unit of the base currency, which is the first currency in the pair. For example, in the EUR/USD pair, the U.S. dollar (USD) is the quote currency. The pair tells you how many dollars are needed to buy one euro.

Understanding the quote currency is essential for calculating the value of a trade. It helps in determining how much profit or loss is made when the price moves. When the price of a currency pair increases, the base currency is strengthening against the quote currency. Conversely, when the price decreases, it means the base currency is weakening. All profit and loss in Forex trading is ultimately calculated in the quote currency. It is then converted back to your account’s base currency.

Browse through other terms in our Trader’s Dictionary.