Base and quote currency confusion: help each other out
In EUR/USD, EUR is the base and USD is the quote. Buying the pair means buying euros and selling dollars; the price is how many dollars one euro costs. It's simple in theory and a source of endless mistakes in practice.
What helped the concept click for you? Post the explanation or example that finally made it stick, or the question you still have.
The base and quote currency guide covers long and short positions from first principles.
Background: Base and quote currency: how to read a currency pair and go long or short
In EUR/USD at 1.1050, the euro is the base and the dollar is the quote. How to read a quote, what buying and selling a pair means, and why profit and loss start in the quote currency.
What is the base currency in a forex pair?
The first currency in the pair. In EUR/USD, the euro is the base currency, and the price shows how many US dollars one euro costs.
What does going long on EUR/USD mean?
Buying euros and selling US dollars. The position profits if the euro strengthens against the dollar and the EUR/USD price rises.
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