In the foreign exchange market, a currency quotation is used to represent the variable amount of foreign currency necessary to purchase or sell one unit of the local currency. Indirect quotes are also known as quantity quotations since they represent the amount of foreign currency required to purchase units of local currency. In other words, in an indirect quote, the base currency is the home currency, but the counter currency is the foreign currency.

An indirect quote in forex refers to a currency quote where the foreign currency is the base and the domestic currency is the quote. It shows how much of the local currency is needed to buy one unit of a foreign currency. For example, if you are in the UK and see USD/GBP = 0.78, it means 1 USD equals 0.78 British pounds, this is an indirect quote for someone in the UK.

Indirect quotes are commonly used in countries that are not major currency hubs. They help traders understand the relative strength of their domestic currency against foreign currencies. In contrast, a direct quote shows the domestic currency as the base and the foreign currency as the quote currency.