As an example, let’s take the market of ordinary goods:
Goods market - a car costs 20.000 USD The currency of payment – US dollars; The product: a car
Forex - 1 EURO costs 1,02 USD The currency of payment, which is called the quote currency – US dollars; The product (currency) or base currency: EURO
The base currency is the first in the currency pair (for example, in the currency pair EUR/USD the base currency is EURO). All deals are made with the base currency (i.e. Euro is sold for US dollars). The quote currency usually stands the second in the currency pair and the price of the base currency is shown in it.
