Quote Currency
Trading BasicsThe second currency in a currency pair. In EUR/USD, the US dollar (USD) is the quote currency. It shows the price of one unit of the base currency.
What Is the Quote Currency?
The quote currency (also called the counter currency) is the second currency in a Currency Pair. In EUR/USD at 1.0850, USD is the quote currency. The exchange rate of 1.0850 means 1 euro costs 1.0850 US dollars. The quote currency is the denomination in which the price is expressed.
Quote Currency and Profit/Loss
Your profit or loss on a trade is initially calculated in the quote currency. If you buy EUR/USD and it moves up 50 Pips, your profit is 50 x $10 = $500 (already in USD since USD is the quote currency). If you trade EUR/GBP and it moves 50 pips, your profit is in GBP, which your broker then converts to your account currency.
Quote Currency and Pip Value
When the Quote Currency matches your account currency (for example, trading EUR/USD with a USD account), pip value calculations are straightforward. When it does not match, the broker applies a conversion rate. Our Profit/Loss Calculator handles these conversions automatically for any account currency.
Related Terms
Base Currency
The first currency listed in a currency pair. In EUR/USD, the euro (EUR) is the base currency. One unit of the base currency is priced in terms of the quote currency.
Currency Pair
Two currencies quoted together showing how much of one currency is needed to buy one unit of the other. EUR/USD = 1.0850 means 1 euro costs 1.0850 US dollars.
Exchange Rate
The price of one currency expressed in terms of another currency. EUR/USD at 1.0850 means 1 euro equals 1.0850 US dollars.