What is the difference between a base and a quote?

The first listed currency within a currency pair is called the base, while the second currency that is the benchmark is called the quote. Major currencies are considered currencies that are most often traded against the U.S. dollar, such as EUR/USD, AUD/USD, and USD/CAD. Trading currency pairs are often conducted in the foreign exchange market.

What is an asset base?

An asset base is the underlying value of assets that constitute the basis for the valuation of a firm, loan, or derivative security. For a firm, the asset base is its book value. For a loan, it is the collateral backing the loan. For a derivative, it is the underlying asset.

What is the difference between asset-based and cost-based valuation?

Asset-based valuation is commonly used to value businesses, while the cost-based approach is used to value property. The former approach measures the business equity while the latter approach estimates the individual value of tangible and intangible assets.

What is a base currency?

For accounting purposes, a firm may use the base currency as the domestic currency or accounting currency to represent all profits and losses. In forex, the base currency represents how much of the quote currency is needed for you to get one unit of the base currency.