Instruments

Base currency — definition & meaning

The first currency in a pair — the one being priced.

The base currency is the first currency listed in a pair; the quote currency is the second. In EUR/USD, the euro is the base and the dollar is the quote.

The price tells you how many units of the quote currency one unit of the base is worth. Buying the pair means going long the base and short the quote.

The information on Trding.io is for general information only and is not investment advice. Trading involves a real risk of losing money, and most retail traders lose. Never trade money you cannot afford to lose.

Related terms

Two currencies quoted together, showing the price of one in the other.

The global market for trading one currency against another.

The smallest standard price move in most currency pairs.

CFD (contract for difference)

A leveraged contract to exchange the price change of an asset, without owning it.

A leveraged way to bet a stake per point on a market's direction.

A unit of ownership in a company.

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