The vocabulary of the Currency Converter API

The 10 fields and concepts you'll meet in the response — defined in plain English, each with a real example value.

10 terms
General10

Exchange Rate

The price of one currency expressed in terms of another currency.

Base Currency

The first currency in a currency pair, representing one unit (e.g., EUR in EUR/USD).

Quote Currency

The second currency in a pair, showing how much of it equals one unit of the base currency.

Pip

Point in percentage - the smallest price movement in a currency pair, typically 0.0001.

Bid/Ask Spread

The difference between the buy price (ask) and sell price (bid) for a currency.

Floating Rate

Exchange rate determined by market supply and demand rather than government intervention.

Pegged Rate

Exchange rate fixed by government to another currency, typically the US Dollar.

Carry Trade

Strategy of borrowing in a low-interest currency to invest in a higher-interest currency.

Safe Haven

Currencies that tend to strengthen during market uncertainty (USD, JPY, CHF).

DCC

Dynamic Currency Conversion - merchant offer to charge in your home currency (usually unfavorable rates).

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