Quote Currency

The second currency in a pair, in which the price of the base currency is stated.

Example

In EUR/USD, the US dollar is the quote currency.

Important

Pip values and profits on a trade are naturally measured in the quote currency.

Related terms

• Currency Pair — Two currencies quoted against each other, showing how much of the second is needed to buy one unit of the first.
• Base Currency — The first currency in a pair, the one being priced.

Lessons that explain it

• Every currency trade is a bet on two countries at once — A forex position is always one currency against another. Retail traders usually hold it through leveraged broker products, while every international investor already holds currency risk without trading at all. (9 min)

All 578 terms in the Investing glossary