Base Currency
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Base vs. Quote
In any trade the “Base” is the currency with a value of one. It’s the one where the amount doesn’t change over the duration of the trade. In both Dolly’s and Jimmy’s cases, the value of the other currency remained stable, only the dollar’s value changed. He opened and closed with 10,000 Euros just as she opened and closed with 10,000 Pounds. It doesn’t matter if the base currency is the one rising or falling in value relative to the quote currency. All that matters is that you understand the base is always one, in comparison to the other currency in the pair.
Its’ value is your anchor point for the trade.