Quote currency
Definition
The quote currency is the unit used to express the price of the base asset in a trading pair. Its own market value can affect the cash value of balances and proceeds.
How quote currency works
The quote currency is the unit used to express the price of the base asset in a trading pair. Its own market value can affect the cash value of balances and proceeds.
Distinguish a token-denominated profit from its cash value.
Example
Suppose 200 quote-token units each trade at an invented USD 0.95. USD market value is 200 × 0.95 = 190 dollars before sale costs.
Common mistakes
- Treating a stablecoin quote balance as a guaranteed dollar balance.