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