Ausgangswährung

Ausgangswährung, often translated as base currency or quote currency, refers to the second currency listed in a currency pair. In foreign exchange markets, currency pairs are always quoted in relation to each other. For example, in the EUR/USD pair, EUR is the base currency and USD is the quote currency. This means that the price of the pair indicates how many units of the quote currency (USD) are needed to purchase one unit of the base currency (EUR). When a trader buys EUR/USD, they are buying Euros and selling US Dollars. Conversely, when they sell EUR/USD, they are selling Euros and buying US Dollars. The value of the Ausgangswährung fluctuates in relation to the base currency, and its movement determines the overall direction and profitability of a trade. Understanding the role of the Ausgangswährung is fundamental for interpreting exchange rates and executing currency transactions correctly. It is the currency against which the value of the base currency is measured.