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Transaction Currency

Trading Term

In Forex (FX) trading, the transaction currency (also referred to as base currency) is the first currency listed in the currency pair. When creating a Forex order with Interactive Brokers, the order quantity is entered in terms of the transaction currency. Example: An order to buy 100,000 EUR.USD @ 1.353 would result in the following:

  • Buy 100,000 EUR
  • Sell 135,300 USD (computed as 100,000 X 1.353)

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