What Is Base Currency?
The first currency in a currency pair is called the “base currency,” and it is the first one.
There are two currencies in a pair: one is the first and the other is the second.
In the forex market, the price of a currency unit is shown in the form of a currency pair.
There is a first currency in a currency pair quote called “the base currency.” This is also called the “transaction currency.”
In a currency quote, the second part is called the quote currency or the counter currency.
A currency pair called EUR/USD would be an example of this. The euro would be the base currency. The US dollar would be called “quote” currency.
In forex, currency pairs are written as XXX/YYY or XXXYYY, but you can also write them like that.
If you look at the table above, the base currency is called “XXX” and “YYY” is called “quote.”
There are two examples of this format: The EUR/USD and the USD/CAD are both examples of this.
The International Organization for Standardization (IOS) says that the abbreviations for currencies should be the same (ISO). These codes are found in the standard ISO 4217.
Currency pairs use these three-letter codes to represent a certain currency.
Slashes are used to separate currencies that show a currency pair. Sometimes, the slash isn’t there, but it means the same thing.