Quote Currency
Quote currency, also known as the counter currency, is a term used in the foreign exchange market. It is the second currency in a currency pair, and is the currency that is quoted in relation to the base currency. For example, in the currency pair EUR/USD, the quote currency is the US dollar. The value of the base currency is determined by its comparison to the quote currency.
History of Quote Currency
The concept of quote currency has been around since the early days of currency trading. In the past, traders would quote the value of one currency in terms of another. For example, in the 1700s, the British pound was quoted in terms of the Spanish dollar. This practice of quoting one currency in terms of another is still used today in the foreign exchange market.
In the modern foreign exchange market, the quote currency is the second currency in a currency pair. The value of the base currency is determined by its comparison to the quote currency. For example, in the currency pair EUR/USD, the euro is the base currency and the US dollar is the quote currency. The value of the euro is determined by its comparison to the US dollar.
Table of Comparisons
| Base Currency | Quote Currency | Exchange Rate |
|---|---|---|
| EUR | USD | 1.17 |
| GBP | USD | 1.31 |
| JPY | USD | 0.0091 |
Summary
Quote currency, also known as the counter currency, is a term used in the foreign exchange market. It is the second currency in a currency pair, and is the currency that is quoted in relation to the base currency. The value of the base currency is determined by its comparison to the quote currency. For more information about quote currency, you can visit websites such as Investopedia, FXCM, and Forex.com.
See Also
- Base Currency
- Currency Pair
- Exchange Rate
- Forex
- Margin Trading
- Pip
- Spread
- Leverage
- Currency Swap
- Currency Futures
