Base and Quote Currencies Explained (With Examples)
The forex market can be confusing, especially for beginners. Read on to discover the basics of base and quote currencies and how they work.


Updated November 14, 2023.
In the forex market, all of the assets are displayed as currency pairs, where the value of the asset denominates the amount required to buy one currency with another.
A typical example of a currency pair is EUR/USD—the EUR is the base currency (also known as the transaction currency) while USD is the quote currency (or the counter currency).
What Is Base Currency?
The base currency represents how many units you need to buy one unit of the quote currency. So, if the EUR/USD pair currently trades at 1.03, you'll need to sell 1.03 euros to buy 1 US dollar.
Of course, the base currency rate is subject to very frequent change, as there are a lot of factors potentially impacting the number, like current interest rates, GDP, and macroeconomic events.
» Interested in trading? Here's how to open a Fortrade account
What Is Quote Currency?
The quote currency (also known as the counter currency) is the second currency in a forex pair, which indirectly denominates the value of the first (the base) currency.
In the example above with EUR/USD, USD is the quote currency, which is the currency we're intending on buying.
Related Articles

Defining Bid-Ask Spread: How Does It Work in Forex Trading?
Andrew Moran
January 10, 2024

Gold CFD Trading in 2023 (Detailed Breakdown for Beginners)
Andrew Moran
June 18, 2024

The Ins and Outs of Trading Crude Oil Futures
Arjel Vajvoda
September 15, 2024

Gold vs. Silver for Investing: Weighing the Pros & Cons
Arjel Vajvoda
November 20, 2024

5 Pivot Point Trading Approaches to Enhance Your Investment Strategy
Marcel Deer
November 21, 2024