Example
In GBP/USD, the British pound is the base currency. Lot sizes are measured in the base currency, so one standard lot of GBP/USD is £100,000.
Forex glossary
What Is Base currency in Forex Trading?
Definition
The first currency in a currency pair. The quote shows the price of one unit of the base currency.
Updated
SaveRelated terms
- Quote currency
- The second currency in a currency pair. Profits and losses are first calculated in the quote currency.
- Currency pair
- Two currencies quoted against each other, such as EUR/USD. The price shows how much of the second currency buys one unit of the first.