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Base Currency Definition

The base currency is the first currency listed in a currency pair, against which the second currency is quoted.

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What is a Base Currency?

In a currency pair, the base currency represents the amount of the quote currency needed to buy one unit of it.

Understanding the base currency is essential for reading forex quotes correctly.

Example of Base Currency

In EUR/USD, the euro is the base currency and the U.S. dollar is the quote currency.

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