Quote Currency
The second currency in a currency pair, showing how much of it is needed to buy one unit of the base currency.
Definition
The quote currency (or counter currency) is the second currency listed in a forex pair. In EUR/USD, USD is the quote currency. The exchange rate tells you how many units of the quote currency are needed to buy one unit of the base currency.
How It Works
- EUR/USD = 1.1000 means 1 EUR costs 1.10 USD
- USD is the quote currency
- Profit/loss calculated in quote currency
- Then converted to account currency
Trading Tips
1
Pip value depends on quote currency
2
USD as quote = simpler pip calculations
3
Cross rates have non-USD quote currencies
Related Terms
Start Trading
Put Your Knowledge Into Practice
Compare regulated brokers and find the best one for your trading style.