Log in Open account

Basics

Quote currency

The quote currency is the second currency in a pair: the price shows how much of it one unit of the base currency costs. Profits and losses on a pair are first calculated in the quote currency.

Also called: counter currency, second currency, terms currency

Hypothetical example

In EUR/USD the quote currency is the US dollar. Hypothetically, a move from 1.1000 to 1.1010 on a position of 100,000 euros changes its value by 100 US dollars, a gain or a loss depending on the direction of the trade.

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.
Basics8 min read
Pips, lots and spreads explained
How price moves are measured, how trade size turns pips into money, and what the spread costs you on every trade.

Back to the glossary