Base and Quote

Forex Quotes were created to simplify the calculation of the current rate of one currency against another. Here is an example of a foreign exchange rate for the Australian Dollar versus the United States Dollar:

When buying, the exchange rate tells you how much you have to pay in units of the quote currency to buy one unit of the base currency. In the above example, you need to pay 0.65200 United States Dollar to buy 1 Australian Dollar.

When selling, the exchange rate tells you how many units of the quote currency you can get for selling one unit of the base currency.

In the above example, you will receive 0.65200 United States Dollar when you sell 1 Australian Dollar.