What is a currency pair and its quote?
In forex you are buying or sellling currency pairs. When you buy or sell a currency pair you are actually buying one currency and selling another. The balance between the two is the quote of the currency pair. Sometimes the quote is also referred to as rate. Example: if you buy 10,000 of the GBPUSD and the quote is 1.9550 then you are buying 10,000 of the GBP and selling 1.9950 * 10,000 = 19,950 USD to pay for it. This might sound a bit strange because how can you sell USD if you didn’t buy it first? The answer is simple; you will be reversing the process later on. In other words you will be selling the 10,000 GPB later on and you will receive (buy) USD back at the then going rate. So buying or selling a currency pair involves two currencies where you will be buying one and selling the other. The first currency in a currency pair is called the base currency, sometime also referred to as primary currency. In our example this is the GBP. The second currency is the quote currency, also re
