What is Quote Currency?

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The **Quote Currency**, also known as the counter currency or terms currency, is the second currency listed in a foreign exchange (FX) pair, representing the amount of that currency required to purchase exactly one unit of the base currency. This currency's value is the actual exchange rate, which fluctuates constantly based on market supply and demand.

Quote Currency

What is Quote Currency?

What is the fundamental difference between the Quote Currency and the Base Currency, and how does this distinction impact FX trading calculations?

How does the Quote Currency's volatility and liquidity affect advanced trading strategies like arbitrage and hedging in the global FX market?

Why does the US Dollar frequently serve as the Quote Currency in major FX pairs, and what are the global economic implications of this convention?

How do direct and indirect quotes relate to the Quote Currency, and what are the practical implications for corporate foreign exchange exposure management?

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