What is Base Currency and Counter Currency?

What is Base Currency and Counter Currency?

     A Forex deal can be quoted in each currency, but it must always have two sides. The first currency scheduled is the base currency and is always 1. The second currency scheduled, also called the counter currency, is the amount essential to buy one unit of the first currency. An example of this extract of the U.S Dollar and the Japanese yen at 106, shown as USD/JPY 106. That means each U.S. Dollar you receive 106 JPY. The USD is the base currency, and the JPY is the counter currency.

Ex Currency Pairs:

Base Currency / Counter Currecy

• EUR/USD
• GBP/USD
• AUD/USD
• AUD/CAD
• EUR/GBP
• USD/JPY
• USD/CHF