Below is a glossary of terms that are used in the online trading industry. Select the first letter of the word you are seeking from the list above to jump to the appropriate section of the glossary.
Base and Quote Currencies
In currency pairs, the first currency is the “base” currency (numerator) and the second currency is the “quote” currency (denominator). The value of the base currency is always one. Therefore, the quoted currency expresses the amount of the second currency compared to one base currency. In the British pound sterling/United States dollar currency pair (GBP/USD), for example, the value of the dollar is expressed in terms of one pound.