kohdevaluutat

Kohdevaluutat refers to the currency that is being bought or sold in a foreign exchange transaction. When one currency is exchanged for another, the currency that is being acquired is known as the quote currency or target currency. For example, in the currency pair EUR/USD, if an investor is buying Euros, then the Euro is the base currency and the US Dollar is the quote currency or target currency because that is the currency they are using to buy the Euros. Conversely, if they are selling Euros, then the US Dollar becomes the base currency and the Euro is the quote currency. Understanding the role of the quote currency is crucial for interpreting exchange rates and making informed trading decisions in the forex market. The price of a currency pair is always quoted as the amount of the quote currency needed to purchase one unit of the base currency. Therefore, the value of the quote currency directly impacts the profitability of a foreign exchange trade.