Quote currency: meaning in forex and gold trading
The quote currency is the second currency in a pair; profit, loss and pip value are first calculated in it.
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Quote currency: The quote currency is the second currency in a pair; profit, loss and pip value are first calculated in it.
Why it matters
In EUR/USD the quote currency is the dollar, so profit and loss on the trade arise in dollars. If your account is in pounds, the platform converts it. In USD/JPY the quote is the yen, so pip value starts at 1,000 yen per standard lot and is converted at the current rate. This is why pip value differs from pair to pair.
Worked example
A 20 pip gain on one lot of USD/CAD is 200 Canadian dollars. At USD/CAD 1.40 that is about 142.86 US dollars.
Common mistakes
- Assuming profit is always in dollars.
- Forgetting the conversion into the account currency.
If you follow trade signals, for example the gold signals or EUR/USD signals, understanding this term helps you size and manage each trade yourself. The free Forexuro Telegram channel shares daily market updates where these ideas are used in practice.
Related terms
Tools and guides
Frequently asked questions
What is the quote currency in USD/JPY?
The Japanese yen.
Is pip value always in the quote currency?
It starts there and is then converted to your account currency.
Education only, not financial advice. Trading forex, gold and CFDs carries a high risk of losing money, and leverage magnifies both gains and losses. Past performance is not a reliable guide to future results. Read our risk disclosure.