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Quote currency

The second currency in a pair, in which the price of one unit of the base currency is expressed.

In USD/JPY at 150.00, one dollar (base) costs 150 yen (quote). Profit and loss on a trade is initially in the quote currency and converted to your account currency.

The quote currency determines the pip value: on pairs quoted in USD, pip values are fixed in dollars; on others they fluctuate with the exchange rate.

Example: a 50-pip gain on 1 standard lot of USD/JPY is 50,000 yen, which at 150 is about $333, not $500.

Related: base-currency, pip, major-pairs, exotic-pairs

Educational only, not advice. Spotted an error? Post in Site Feedback.