what is a quote currency 
in foreign exchange forex the quote currency also known as the counter currency is the second currency in both a direct and indirect currency pair the quote currency is used to determine the value of the base currency the quote currency is listed after the base currency in the pair when currency exchange rates are quoted trading currenciesunderstanding the quotation and pricing structure of currencies is essential for investors who want to trade currencies in the forex market market makers tend to trade specific currency pairs directly or indirectly in a direct quote the quote currency is the foreign currency in an indirect quote the quote currency is the domestic currency investors can determine how much of the quote currency they need to sell to purchase one unit of the first or base currency as the rate in a currency pair increases the value of the quote currency falls whether the pair is direct or indirect most u s dollar usd pairs hold the usd as the base currency if the usd is not the base it is a reciprocal currency currencies are commonly bought and sold on the spot market based on their trading price the price is determined by supply and demand and calculated based on interest rates economic performance geopolitical environment and price speculation 