In Forex trading, currencies are quoted in pairs, consisting of a base currency and a quote currency.
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Base Currency: This is the first currency listed in a currency pair. It represents the currency being traded and is the reference point for the exchange rate. For example, in the pair EURUSD, the Euro (EUR) is the base currency.
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Quote Currency: This is the second currency listed in a currency pair. It indicates how much of the quote currency is needed to purchase one unit of the base currency. In the EURUSD example, the US Dollar (USD) is the quote currency.
The rate will indicate how much the quote currency is for 1 unit of the base currency.
For example, if the EURUSD rate is 1.05, this means that 1 EUR will equal 1.05 USD.
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