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Basics

Base currency

The base currency is the first currency in a pair: the one whose price is being quoted. Buying a pair means buying the base currency and selling the quote currency at the same time.

Also called: first currency

Hypothetical example

In USD/MXN, the US dollar is the base currency. A hypothetical quote of 20.00 means one US dollar costs 20 Mexican pesos.

Used in these guides

Basics8 min read
What is forex and how does it work?
How the global currency market works, how a forex trade is priced, and the risks that come with trading it.

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