The second currency in a forex pair — the one used to price one unit of the base currency.
The quote currency sits on the RIGHT side of a pair. In EUR/USD, the dollar is the quote. The price of the pair literally answers the question: "how many units of the QUOTE currency does it take to buy one unit of the base?" EUR/USD at 1.0950 means one euro costs 1.0950 US dollars.
When you profit on a trade, that profit is initially denominated in the quote currency. A 50-pip win on EUR/USD makes you USD because the dollar is the quote. A 50-pip win on USD/JPY makes you JPY because the yen is the quote — your broker then converts that to your account currency at the close.
This is why pip values stay constant on USD-quoted pairs (always ~$10 per pip per standard lot in a USD account) but float on non-USD-quoted pairs.
Real trade example
EUR/JPY traders in late 2022 saw their pip value swing nearly 15% in a few months as USD/JPY ran from 130 to 150 — same lot size, totally different dollar risk.
Frequently asked about quote currency
What is a quote currency in trading?+
The second currency in a forex pair — the one used to price one unit of the base currency.
When will I see quote currency used in real trading?+
Every forex quote ever displayed. The number after the slash IS the quote currency.
What is the most common mistake traders make with quote currency?+
Forgetting that pip value floats when the quote currency isn't your account currency. Trading GBP/JPY from a USD account means your pip value changes daily as USD/JPY moves.
What do experienced traders know about quote currency that beginners don't?+
If you trade pairs where the quote isn't USD, calculate pip value at the start of every session. A position sized correctly on Monday can be 5% off by Friday if the cross has moved hard.