Ask price
The price at which a seller is willing to sell a currency pair.
THE CURRENCY DESK
The foreign exchange glossary.
Learn forex terms including currency pairs, pips, bid and ask prices, spreads and exchange rates.
Base currency
The first currency in a pair. In EUR/USD, EUR is the base currency.
Bid price
The price at which a buyer is willing to buy a currency pair.
Cross rate
An exchange rate between two currencies that does not include the US dollar.
Currency pair
Two currencies shown together to express their exchange rate, such as EUR/USD.
Exchange rate
The price of one currency expressed in another currency.
Forex (FX)
The global market in which currencies are exchanged.
Liquidity
How easily a currency can be bought or sold without moving its price significantly.
Major pair
A widely traded currency pair that includes the US dollar.
Mid-market rate
The midpoint between the bid and ask prices; often used as a reference rate.
Pip
A standard small unit of price movement in a currency pair, often the fourth decimal place.
Quote currency
The second currency in a pair. In EUR/USD, USD is the quote currency.
Spread
The difference between the bid and ask prices. It can be part of a provider’s cost.
Volatility
How much and how quickly an exchange rate changes over time.