Base Currency

The base currency is the first currency in a quoted pair and represents the unit whose value is being expressed in the quote currency.

In EUR/USD, EUR is the base currency and the quoted number states how many U.S. dollars correspond to one euro. Buying the pair generally means taking a long position in the base currency relative to the quote currency; selling means the reverse exposure. Account currency, settlement rules, lot size, and conversion costs can affect the cash result even when the pair’s price move is understood correctly.