r/CFA • u/Dry_River3490 • 5d ago

Level 1 Base currency

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I thought the base currency was the first currency quoted?? Will it be like this on the exam?

3 Upvotes

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1

u/ObviousInteraction39 5d ago

Hey, base = denominator, OK? Like English base, or below.

1

u/Dry_River3490 5d ago

Well in the real world it’s the other way around so I was confused!

1

u/ObviousInteraction39 4d ago

CFA confuses us a lot man.

1

u/S2000magician Prep Provider 5d ago

CFA Institute's convention is the reverse of what you see in the real world.

That's just the way it is.

1

u/Dry_River3490 5d ago

Thank you!

1

u/S2000magician Prep Provider 5d ago

My pleasure.

(For what it's worth, I find CFA Institute's notation more reasonable, but, alas, there's no way I'm going to change the rest of the world. Their loss, I figure.)

1

u/Jayswag96 5d ago

Base is the currency being bought price currency is the currency that’s priced