Definition – What does Quote Currency mean?
The quote currency is the second currency to appear in a currency pair. In currency trading, all currencies are paired. The base currency appears first (on the left) and the quote currency is displayed next (on the right). This pair is then given a value that represents how many units of the quote currency are required to purchase one unit of the base currency. This value acts as the exchange rate between the two currencies.
The quote currency is also referred to as the secondary currency or counter currency in a currency pair.
ForexTerms explains Quote Currency
For example, the Australian dollar and the Japanese yen create a currency pair AUD/JPY with a value of 78.5730994. The AUD is the base currency and the JPY is the quote currency. The value beside the two (78.5730994) tells a forex trader that it takes 78.5730994 Japanese yen to buy one Australian dollar.
The same system is used by banks and money exchangers but the base currency is usually assumed to be the domestic currency, so only the quote currency and value (exchange rate) is displayed. In this case, it would say JPY 78.5730994 at an Australian bank where customers can convert Australian dollars into yen.
