Glossary
From A to Z all the terms you need to skip the jargon and get started!
Base currency (of an ETF)
Base currency is the first currency listed in a currency pair, and it's used as the reference or primary currency when trading or making an exchange.
In a currency pair, the base currency is typically valued against another currency, called the quote currency. The value of the base currency is always expressed as one unit, while the value of the quote currency is variable. 💱
For example, in the currency pair EUR/USD, the Euro (EUR) is the base currency, and the US Dollar (USD) is the quote currency. If the exchange rate is 1.20, it means that one Euro is worth 1.20 US Dollars.
Fun fact: In the world of forex trading, the US Dollar (USD) is often the base currency in many currency pairs, as it's the world's primary reserve currency. However, there are some exceptions, like the British Pound (GBP), which is the base currency against the USD in the GBP/USD pair. 🌍💵