What is the Quote Currency in Forex?
Quote Currency
Forex Trading Glossary
Quick Answer: The quote currency is the second currency in a pair (e.g., USD in EUR/USD). It shows the price of one unit of the base currency.
What is the Quote Currency?
The quote currency (or counter currency) appears second in a pair quotation and expresses the price of the base currency. For GBP/JPY, the Japanese yen is the quote currency; for EUR/USD, the U.S. dollar fills that role.
How the Quote Currency Works
- Exchange rate meaning: GBP/JPY = 190.00 means £1 equals ¥190.
- Pip value: Pip calculations depend on the quote currency and your account denomination.
- Conversion: Profits or losses are usually converted from the quote currency into your account currency.
- Volatility influence: Economic data impacting the quote currency can quickly change the pair’s valuation.
Related Terms
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