A Counter Currency is the second currency listed in a currency pair, also known as the "Quote" currency. Currency trading can be perplexing at first because you must always deal with a currency pair. The first currency in the pair is referred to as the "Base" currency. The second currency in the pair is referred to as the "Quote" or "Counter" currency. A quotation then specifies the number of units of the counter currency required to purchase one unit of the base currency. A currency pair's quotation typically consists of two prices, similar to how stocks are traded on an exchange.

Counter currency refers to a secondary form of money used alongside or in place of the primary currency in a particular region or market. It often arises due to economic instability, government restrictions, or lack of trust in the official currency. Common examples include foreign currencies or commodities like gold and silver. In some cases, cryptocurrencies serve as counter currencies, offering alternatives to traditional fiat money. These currencies provide individuals and businesses with options for transactions and wealth preservation when confidence in the primary currency wanes. However, counter currencies can also pose challenges, including regulatory issues and volatility.