// TRADING TERMINOLOGY

What is Base Currency?

The first currency in a forex pair quotation.

In-Depth Explanation

In EUR/USD, the EUR is the base currency. The exchange rate shows how much of the quote currency is needed to buy one unit of the base currency.

"If EUR/USD is 1.10, one Euro (base) costs 1.10 US Dollars (quote)."

The second currency in a currency pair quote.

The value of one currency for the purpose of conversion to another.

A market condition where prices are rising or expected to rise.

A market condition where prices are falling or expected to fall.

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