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Forex Basics

Base Currency

The first currency in a currency pair, representing what you are buying or selling.

Full Definition

The base currency is the first currency listed in a forex pair. In EUR/USD, the euro is the base currency. When you buy EUR/USD, you are buying euros and selling US dollars. The exchange rate tells you how much of the quote currency is needed to buy one unit of the base currency. Position sizes are calculated in units of the base currency.

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