The second currency in a currency pair. Also known as the Quote currency.

About Counter Currency?

A Counter Currency is the second listed currency in a currency pair, often referred to as the “Quote” currency. Dealing with currencies can be confusing at the start because you must always deal with a currency pair. The first currency in the team is the “Base” currency. The second currency in the pair is labeled the “Quote” currency or “Counter” currency. A quotation then defines how many units of the counter currency are needed to buy one branch of the base currency. The source of a currency pair usually consists of two prices, much as with stocks traded on an exchange. The “Bid,” generally lower than the “Ask,” is the price at which a market maker or a broker is willing to buy the base currency in exchange for the quote currency. Ask or Offer, usually higher than Bid, is the price at which a broker is willing to sell the base currency in exchange for the quote currency. If the Bid price for a EUR/USD pair is 1.2750 and the Offer price is 1.2752, the difference, 2 “pips” in forex trader slang, is referred to as the “spread.” Most forex brokers derive their trading profits from the spread, so reviewing broker spreads before transacting trades is beneficial. In this example, you would pay $1.2752 to acquire one Euro.