Investing terms

Make the trade
  • Home

Base Currency – What is a Base Currency?

April 26, 2019 by Investor

What is a Base Currency?
Definition of Base Currency: Base Currency is described as the first currency offered in a quote that involves currencies. Dealing with the currencies can be a bit confusing at the initial stage as one has to at first handle the currency pair. The initial currency in this pair is known as the base money. The other currency is this pair is known as counter currency and quote currency. Most of you might not be aware of the term “quotation.” This term defines the number of units present in the counter currency which are needed to purchase a single unit of currency. The quote of a exchange pair generally consists of two costs. It is found that the bid is generally lesser than the “ask”. It is the cost at which the market maker tries to purchase the base currency by exchanging the money. Ask or offer which is generally higher than the Bid is described as the cost based upon which the broker tries to vend the base currency by exchanging the quote currency. It is found that most of the Forex trading brokers derive their gains from the difference between the bid price and offers price, known as spread.

Related posts:

  1. Counter Currency – What is a Counter Currency?
  2. Currency Pair – What is a Currency Pair?
  3. ASK – What is an Ask Offer Price?
  4. Bid Price – What is a Bid Price?
  5. Big Figure – What is the Big Figure?
  6. Base currency
  7. Base Rate
  8. How to Separate the Strong Currency from the Weak Currency in forex trading ?

Filed Under: Education, Uncategorized

Trading made simple

Ads

img

Categories

  • EasyMarkets
  • Education
  • ETX Capital Review
  • Featured Terms
  • Forex brokers
  • Forex Exness
  • Freshforex Review
  • Fxpro
  • Terms
  • Uncategorized
  • XM forex broker
  • Xtrade Review
  • Zulutrade Review

Choose foreign language section

  • الاستثمار حيث
  • পদ বিনিয়োগ
  • 投资条款
  • Investitionen Begriffe
  • शर्तें निवेश
  • Conditions investir
  • Investire termini
  • 用語を投資
  • Investir termos
  • Términos invertir
  • Инвестирование условия
  • Terimleri Yatırım
Copyright wikifx.info 2013