Quote currency definition (2024)

FAQs

What is the meaning of quote currency? ›

The quote currency is the second currency listed in a forex pair. It is also known as the counter currency. The price of a forex pair reflects how much it costs to purchase one unit of the base currency by selling the quote currency. In a pair listed as GBP/USD, USD is the quote currency.

The quote currency is the second currency appearing in a currency pair quotation. The quote currency quoted expresses the number of units of that currency that are equal to one unit of the base currency. For example, if the EUR-USD is quoted at 1.25, EUR is the base currency, and USD is the quote currency.

Currency pairs are quoted based on their bid (buy) and ask prices (sell). The bid price is the price that the forex broker will buy the base currency from you in exchange for the quote or counter currency.

The first listed currency within a currency pair is called the base, while the second currency that is the benchmark is called the quote. Currency pairs are meant to be compared against one another in order to understand how much of the quote currency is required to buy one unit of the base currency.

A “money quote” is a pithy summation of a professional reviewer's overall impression of the book.

In other words, a direct currency quote asks what amount of domestic currency is needed to buy one unit of the foreign currency—most commonly the U.S. dollar (USD) in forex markets. In a direct quote, the foreign currency is the base currency, while the domestic currency is the counter currency or quote currency.

Exchange rate quotations can be quoted in two ways – Direct quotation and Indirect quotation. Direct quotation is when the one unit of foreign currency is expressed in terms of domestic currency. Similarly, the indirect quotation is when one unit of domestic currency us expressed in terms of foreign currency.

Time is a currency you can only spend once, so be careful how you spend it.

The American Currency Quotation shows how many USD it takes to purchase one unit of foreign currency. For example, EUR/USD = 1.10 => 1.10 USD per 1 EUR.

The term currency refers to the tangible form of money that is paper bills and coins. It's used as a medium of exchange that's accepted at face value for products and services as well as for savings and the payment of debt.

What is the most valuable currency quote? ›

The effect you have on others is the most valuable currency there is.

Before a transaction is processed, the asset's price is listed as a bid quote, which means the current price of the asset is subject to change before the transaction is finalized. In forex, the quote refers to the second currency in a bid/ask pair.

The highest-valued currency in the world is the Kuwaiti Dinar (KWD). Since it was first introduced in 1960, the Kuwaiti dinar has consistently ranked as the world's most valuable currency.

What is a Cross Currency? A cross currency refers to a currency pair or transaction that does not involve the U.S. dollar. A cross currency transaction, for example, doesn't use the U.S. dollar as a contract settlement currency.

A currency forward is a binding contract in the foreign exchange market that locks in the exchange rate for the purchase or sale of a currency on a future date. A currency forward is essentially a customizable hedging tool that does not involve an upfront margin payment.

A price quote delivers a fixed price for a product or service. It is given to a client or customer by a supplier and can be either written or verbal. The quoted price is only valid for a certain period of time and can't be changed once the client accepts it.