Mechanics

Quote currency

The second currency in a pair — the one the price is expressed in.

In EUR/USD the dollar is the quote currency: the price states how many dollars one euro is worth. Profit and loss on the pair accrue natively in the quote currency before any conversion to your account currency.

This is why pip value is constant in the quote currency but varies in your account currency whenever the two differ — the reason a conversion rate appears in pip-value calculations.

Diajarkan dalam pelajaran ini

What is a pip? — Forex Foundations
Correlation between pairs — Risk & Position Sizing

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Base currencyThe first currency in a pair — the one being priced.Mechanics PipThe smallest standard price move of a currency pair.Mechanics Currency pairTwo currencies quoted against each other as a single tradeable instrument.Mechanics

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Ask (offer)Base currency Bid Currency pair Going long & going short Lot Pip Spread