The quote currency is the second currency in a currency pair and indicates the currency in which the price of the base currency is expressed.
In the EUR/USD pair, the US dollar is the quote currency. A rate of 1.0900 means that 1 euro costs 1.09 US dollars.
The quote currency plays an important role in calculating profits and losses: pip values, position sizes, and margin requirements are often initially calculated in the quote currency and then converted into the account currency.
In forex trading, understanding the quote currency is essential for correctly interpreting price quotes and determining the financial outcome of a trade.
In exotic currency pairs, the quote currency may also be a less commonly traded currency.
