Base currency has a particular significance in relation to IG’s platform. Here, we define base currency in general investing and explain what it means to you when in base currency forex with IG.
The base currency is the first currency quoted in a forex pair: the two currencies that investors use to trade forex. The accounting currency used by banks and other businesses, which is usually the domestic currency of the country the company is operating in. IG, the base currency is the single unit being bought. It is also known as the primary currency.
As such, a long forex trade will involve buying the base currency while selling the quote currency. USD, the euro is the base currency and the US dollar is the quote. If it is trading at 1. 0502 dollars would be needed to buy a single euro. We’re here 24hrs a day from 8am Saturday to 10pm Friday. Spread bets and CFDs are leveraged products and can result in losses that exceed deposits.