Let's have a look at some foreign exchange quotes. On the screen. now you will see two versions of the same quote, but what does that quote actually mean? Well, the currency displayed on the left, in this case, the euro is the base currency. That's a currency that is always equal to one. So we have one euro. Effectively. The currency on the right is the quoted or counter currency, so that's the variable currency. So the quote we see on the screen now simply means one euro is worth 1.2742 US dollars. If this number would go up, it would mean that the Euro has appreciated and become more valuable in relationship to the US dollar. And if this quote was to go down, it would mean the Euro had lost value in relationship to the US dollar. On the screen now are three more examples of foreign exchange quotes. The first one again is Euro US dollar. And this case much lower and it simply means one Euro can buy 1.1284 US dollars. In the second example, the US dollar is now the base currency. So we have one US dollar. That means that this quote means we can buy $1 for 110.854 Japanese yen. And finally, we wanna have an Australian dollar, Canadian dollar quote, which is very, very close to one. Be very careful when you see quotes that are close to one and always double check your FX quotes if you're not used to dealing with them. Now, if you think a base currency is going to appreciate or become more valuable, that means you're buying the base currency. And of course it means you're selling the quote currency. If you're selling the base currency, it means you're buying the quote currency.