The quote currency is the second currency in a currency pair and represents the amount needed to buy one unit of the base currency.
In every Forex currency pair, two currencies are listed: the base currency (first) and the quote currency (second). The quote currency shows how much of it you need to purchase one unit of the base currency. For instance, in the pair GBP/USD = 1.3000, the quote currency is the US Dollar (USD), meaning 1 British Pound (GBP) costs 1.30 US Dollars.
The quote currency is also the currency in which profits and losses are initially measured before any conversion to your account’s deposit currency. It plays a central role in price display, pip value, and trade execution.
In USD/JPY = 145.50, the quote currency is the Japanese Yen. So, 1 US Dollar equals 145.50 Yen.
Base Currency, Currency Pair, Exchange Rate, Pips, Forex, Margin
Forex / Trade Mechanics
Understanding the quote currency helps you calculate trade size and pip value more accurately—especially when your account is funded in a different currency.
