The counter currency, otherwise known as the quote currency, is the second currency listed within a currency pair.
When a trader buys a currency pair, they are selling the counter currency and if they are selling a currency pair, they are buying the counter currency.
The unit of measurement to determine the change in value between the base and the counter currency is referred to as a [pip].
- Counter currency is also known as the quote currency.
- Counter currency is the second currency that is listed in a currency pair.
- The counter, or quote, currency determines how many units of that currency are needed to buy one unit of the base currency.
- A pip is the unit of measurement used to determine the change in value between the base and the counter currencies.