Currency Pairs, Quotes, and Cross Rates

These pages explain how exchange rates are quoted, which currency is the base or quote currency, and how cross rates are interpreted when USD is not the direct leg.

In this section

• Base Currency: Fundamental Unit in Forex Trading
  The base currency is the reference currency used in foreign exchange (Forex) trading to measure the value of other currencies. Often, this base currency is the US dollar, but it can be any major currency in which exchange rates are quoted.
• Cross Rate: Understanding Exchange Rates between Non-USD Currencies
  An in-depth look at cross rates, which are exchange rates between two currencies based on their relationship with a third currency, commonly the US dollar.
• Currency Pair: The Quotation of One Currency Against Another
  Understand the concept of a currency pair, which involves the quotation of one currency against another in forex trading.
• Direct Quote: Expressing Foreign Exchange in Domestic Currency
  An overview of direct quotes in foreign exchange markets, their types, uses, and how they differ from indirect quotes.
• Indirect Quote in Foreign Exchange: Definition and Comparison with Direct Quote
  An indirect quote in foreign exchange markets expresses the amount of foreign currency required to buy or sell one unit of the domestic currency.
• Quote Currency: Understanding the Second Currency in Trading Pairs
  A comprehensive guide to understanding the role and importance of quote currency (or counter currency) in direct and indirect currency pairs, essential for forex trading, economics, and global finance.