Trading Glossary
Take a look at our list of the financial terms associated with trading and the markets.
Quantitative Analysis
Using financial technology, through complex mathematical and statistical modeling, to understand and predict the price changes in financial markets. It is common to use multiple variables and mathematical formulas to describe the changes and movements of the entire market. For example, using known variables such as the US unemployment rate and inflation rate, we can predict the future trend of the S&P index.
Quantitative Easing
One of the unconventional monetary policies, it was first introduced by Japan in 2000. Refers to the central bank's use of excess currency to buy government bonds (or other asset classes), so that liquidity does not stay in the bond market, but flows into the consumer and investment market. When conventional monetary policy cannot have an effect on the economy, quantitative easing is needed to stimulate it. Large-scale quantitative easing often leads to a depreciation of the country's currency.
Quote Currency
Is the second currency in a currency pair to measure how many units of the quote currency can be exchanged for one unit of base currency. Taking EUR/USD as an example, the US dollar is the quote currency, and if the exchange rate is 1.2, it means that 1 euro can be exchanged for 1.2 US dollars.
Quoted Currency
The currency at the bottom of a currency pair is called the list price currency, and the exchange rate of the currency pair is the base currency measured in the list price currency. In the case of the Eur/usd currency pair (EURUSD), the US dollar is the list currency, and the US dollar is used to mark the euro. If the exchange rate between Europe and the United States is 1.20, then 1 euro can be exchanged for 1.2 US dollars.