| The Base currency is the first currency to appear in a forex pair, and it is the currency that is bought if the trade is in a long position. If it is in a short position, it will be the currency that is sold. If the value of the pair increases, this means that the value of this currency has increased. But if the value of the pair decreases, this means that its value has decreased. The quote currency is the second currency in any pair. If the transaction is in a long position, it is the currency that is sold. If it’s in a short position, it will be the currency that is purchased. For example, in the EUR/USD pair, the Euro is the base currency, and the US Dollar is the quote currency. Want to learn more about this topic? Watch the tutorial “Base and Quote Currency,” which is available on our website. |