Base Currency

Definition

The base currency is the first currency listed in a forex pair. In EUR/USD, the euro (EUR) is the base currency. When you buy a currency pair, you are buying the base currency and selling the quote currency. The exchange rate shows how much of the quote currency is needed to buy one unit of the base currency.

Related Terms

Quote Currency Currency Pair

More Forex Basics Terms

Pip Pipette Lot Size Spread Bid Price Ask Price Quote Currency Currency Pair Major Currency Pairs Cross Currency Pairs