What is the Definition of Quote Currency?
The quote currency is the pair’s second currency.
It is used to establish the base currency’s value.
Currency pair prices are quoted in the forex market.
The base currency, also referred to as the transaction currency, is the currency that appears first in a currency pair quotation.
The currency quotation’s second component is referred to as the quote currency or counter currency.
For instance, in the EUR/USD currency pair, the euro is the base currency and the US dollar is the quote currency.
The exchange rate of a currency pair indicates how much of the quote currency is required to purchase (or sell) one unit of the base currency.
As the rate in a currency pair rises, the quote currency’s value decreases.
Currency pairs in forex are denoted by the symbol XXX/YYY or simply XXXYYY.
The base currency is XXX, while the quote currency is YYY.
EUR/USD and USD/CAD are two currency pairs that follow this format.
The International Organization for Standardization prescribes the currency abbreviations (ISO). These codes are defined in ISO 4217.
Currency pairs use these three-letter codes to denote a particular currency.
Currency pairs are typically denoted by a slash character. Occasionally, the slash is omitted, but the result is the same.