Base currency Definiton
Refers to the first currency in the currency pair. It also shows how much the base currency is worth when measured against the second currency. If the exchange rate for the pair EUR/USD is 1.290, then 1 EUR is worth 1.290 USD.
The base currency is the first currency in a currency pair, and the currency that remains constant when determining a currency pair's price. The United States Dollar (USD) and the European Union Euro(EUR) are the dominant base currencies in terms of daily traded volume in the foreign exchange market.
The British Pound (GBP), also called sterling, is the third ranking base currency. The USD based pairs are USD/JPY, USD/CHF and USD/CAD; the Euro based pairs are EUR/USD, EUR/JPY, EUR/GBP, and EUR/CHF. The GBP is the base for GBP/USD and GBP/JPY. The Australian Dollar (AUD) is its own base against the USD (AUD/USD).
Related words
Base Currency ・ Balance of Payments ・ Bar Chart ・ Big Figure ・ Bretton Woods Agreement ・ Back office ・ Bonds ・ Broker・ BID / ASK・ Balanced Fund・ Balanced investment strategy・ Backpricing・ Backwardation・ Bear Spread・ Bear Vertical Spread・ Bozu・ Breakaway gap
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