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Forex market has some key terms used for trading like base currency and quote currency. Having an understanding of what the terms are and having an understanding of how forex terms are used in the transaction ensures that we get the most out of the investment tools.
The most frequently encountered terms when trading in the foreign exchange market are base currency and quote currency . Let's look closely at what these terms mean in order to achieve numerical success in Forex.
The most frequently encountered terms when trading in the foreign exchange market are base currency and quote currency . Let's look closely at what these terms mean in order to achieve numerical success in Forex.
Base Currency
The base currency is the currency that is initially read on the left side of the parity. It is also known as the primary currency.
For example;
The base currency for the USDCAD parity is the dollar on the left side of the parity. It is the value of the dollar against the canadian dollar which is meant to be mentioned.
So, when the USD / CAD rises to 1,35 from 1,33, the dollar is appreciating against the cad.
If we give an example for EURUSD, the base currency is the euro. In the use of this parity, the value of the euro against the dollar is measured.
The quote currency is the currency located on the right side of the parity. It is also known as the second currency.
For example;
USDJPY- is the value of the dollar versus the yen. The base currency is the dollar, the yen is the counter currency.
Currency pairs measure the relative value of two currencies. Regardless of currency, the result is the same. For this reason we give a general example;
XXX/YYY
XXX: Base currency (primary currency)
YYY: Quote currency (second currency)
Reading GBPUSD = 1.25 means that _1 is equal to $1.25. This directly says that in order to purchase _1, a buyer must pay $1.25. The currency pair quotation is read in the same manner when selling the base currency.
If a seller wants to sell _1, he will get $1.25 for it.
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When doing technical analysis and fundamental analysis, it is necessary to know what the base currency and the counter currency mean, and the market should interpret this information at its best.
If you want to make your investment in the best way and evaluate profitable transactions, you have to know about the markets, you have to read and research very much. We are trying to provide you with all the basic level of forex and platform information you need.
Our goal is to show that everyone who is laboring can succeed in the fx world.For this reason, you should believe that you can get high profit rates that seem impossible, and you should do the necessary work for max.
If you want to have detailed information about forex, please continue to follow our website...
For example;
The base currency for the USDCAD parity is the dollar on the left side of the parity. It is the value of the dollar against the canadian dollar which is meant to be mentioned.
So, when the USD / CAD rises to 1,35 from 1,33, the dollar is appreciating against the cad.
If we give an example for EURUSD, the base currency is the euro. In the use of this parity, the value of the euro against the dollar is measured.
Quote Currency(Counter currency)
For example;
USDJPY- is the value of the dollar versus the yen. The base currency is the dollar, the yen is the counter currency.
Currency pairs measure the relative value of two currencies. Regardless of currency, the result is the same. For this reason we give a general example;
XXX/YYY
XXX: Base currency (primary currency)
YYY: Quote currency (second currency)
Reading GBPUSD = 1.25 means that _1 is equal to $1.25. This directly says that in order to purchase _1, a buyer must pay $1.25. The currency pair quotation is read in the same manner when selling the base currency.
If a seller wants to sell _1, he will get $1.25 for it.
When doing technical analysis and fundamental analysis, it is necessary to know what the base currency and the counter currency mean, and the market should interpret this information at its best.
If you want to make your investment in the best way and evaluate profitable transactions, you have to know about the markets, you have to read and research very much. We are trying to provide you with all the basic level of forex and platform information you need.
Our goal is to show that everyone who is laboring can succeed in the fx world.For this reason, you should believe that you can get high profit rates that seem impossible, and you should do the necessary work for max.
If you want to have detailed information about forex, please continue to follow our website...
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