DEFINITION of 'Counter Currency'
The currency used as the reference or second currency in a currency pair. When viewing an ISO currency code the counter currency is listed after the base currency, and is separated with a slash. Major currencies, such as the euro and U.S. dollar, are more likely to be the base currency in a currency pair.
BREAKING DOWN 'Counter Currency'
It is important to understand the structure of the currency pair in order to understand forex trading. In the currency pair USD/EUR the euro (EUR) is considered the counter currency. In the pair, units of counter currency are per unit of base currency.