Base currency

Listed first currency of a currency pair.

Exchange rates of different currencies are represented as currency pairs. The listed first currency of such a currency pair is the base currency, the second is called the quote currency.

The price of the currency pair indicates how many units of the quote currency are required to buy one unit of the base currency.

Investors who engage in FX trading buy the base currency and, at the same time, sell the quote currency. Using the example of the euro and US dollar: at the exchange rate of EUR 1 = USD 1.30, the euro is the base currency while the US dollar represents the quote currency exchange. Investors wishing to buy one euro have to sell USD 1.30.

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