In foreign exchange, currencies are quoted in pairs and usually with their currency code, containing three letters, rather than the long version name of the currencies.For example, the euro -U.S. dollar currency pair is quoted as EUR/USD, where the first element is known as the base currency and the element after the slash symbol is known as the quote currency.The currency pair is followed by an equals symbol and the exchange rate of the pair. That exchange rate means the cost in the quote currency required to pay one unit of the base currency, in other words, the base currency equals always one.In the following quote: EUR/USD = 1.1000 we understand that to buy one euro you need to pay 1.1000 dollars.