What Is Quote Currency? Meaning & Example
Definition
The quote currency is the second currency in a forex pair and shows how much of it is needed to buy one unit of the base. Profits and losses are often measured in the quote currency.
Related terms
The base currency is the first currency in a forex pair, and its value is expressed in units of the second. Buying a pair means buying the base currency.
Forex PairA forex pair quotes the value of one currency in terms of another. The first currency is the base and the second is the quote currency.
PipA pip is a standard unit of price movement in forex, usually the fourth decimal place for most pairs and the second for yen pairs. Pips are used to measure gains, losses and spreads.
What is Quote Currency?
The quote currency is the second currency in a forex pair and shows how much of it is needed to buy one unit of the base. Profits and losses are often measured in the quote currency.
Can you give an example of Quote Currency?
In USD/JPY at 150.00, the Japanese yen is the quote currency.