Quote Currency
The second currency in a currency pair, showing how much of it is needed to buy one unit of the base currency.
The quote currency is the second currency in a forex pair, showing how many units buy one of the base currency. In EUR/USD, USD is the quote currency.
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
Pip value depends on quote currency
USD as quote = simpler pip calculations
Cross rates have non-USD quote currencies
Quote Currency Example
Say USD/JPY trades 150.00. The yen is the quote: one dollar costs 150 yen. When the pair rises, the dollar strengthens and the yen weakens, even though only one number moved.
How Traders Use Quote Currency
Name both sides before every trade: what you buy, what you fund it with. Losses and margin both settle through the quote side, so its strength decides half your result.
Related Terms
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