Categories: Forex Glossary
For indirect currency pair, the domestic currency is the quote currency and the foreign currency is the base currency. That means the quote indicates how many domestic currencies are needed to purchase one unit of foreign currency.
For example if your domestic currency is USD then a Indirect currency pair would be 1.4320 EUR/USD, which means with €1, you can purchase $1.4320.
There are no strict rules that determine whether a currency pair is shown directly or indirectly. A direct currency pair for a trader in US would be an indirect currency pair for a trader living in foreign country.
