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- January 05, 2011, 10:22:00 PMHow to Read the Forex Quote While Trading in Forex Market
To have a better insight about currency exchange rate and how it affects the value of your Forex investment,You are not allowed to view links. Register or Login, we will discuss everything about Forex Quote in this article.
As a Forex trading broker you have to basically understand that cumulative buying and selling of a currency in the Forex market causes the value of investment to fluctuate. Meaning,You are not allowed to view links. Register or Login, it may either go down or move up because of cumulative buying and selling that takes place in the Forex market.
There are many factors that are responsible for causing such fluctuations in exchange rate. Factors like, political and social or fundamental economic environment of a country,You are not allowed to view links. Register or Login, central banks fiscal policy of these countries, interest rate adjustment etc to are some of the popular factors.
Currencies are traded in pairs and each currency has its own symbol. For the Euro dollar- it is EUR, Japanese Yen - it is JPY, for the Pounds Sterling - it is GBP, and for the Swiss Franc - it is CHF. Hence, EUR/USD would be Euro-Dollar pair. GBP/USD would be pounds Sterling-Dollar pair and USD/CHF would be Dollar-Swiss Franc pair and so on and so forth.
You will always see the USD quoted first (with exceptions like Pounds Sterling,You are not allowed to view links. Register or Login, Euro Dollar, Australia Dollar (AUD) and New Zealand Dollar (NZD). The first currency quoted is called the base currency and the U.S. dollar is regarded as the central currency of the Forex market and it is part of majority of the forex transactions happening across the globe.
So now coming back to our basic lesson - how are these currency pairs quoted on the Forex market and how to read the quotes? The Forex trader will see two distinct numbers on all Forex quotes. The first one is the bid and the second is offer or asking price.
When you are reading these numbers you will notice that there exists a difference between the bid and the offer price. This difference is what is termed as the spread.
To have a better insight about currency exchange rate and how it affects the value of your Forex investment,You are not allowed to view links. Register or Login, we will discuss everything about Forex Quote in this article.
As a Forex trading broker you have to basically understand that cumulative buying and selling of a currency in the Forex market causes the value of investment to fluctuate. Meaning,You are not allowed to view links. Register or Login, it may either go down or move up because of cumulative buying and selling that takes place in the Forex market.
There are many factors that are responsible for causing such fluctuations in exchange rate. Factors like, political and social or fundamental economic environment of a country,You are not allowed to view links. Register or Login, central banks fiscal policy of these countries, interest rate adjustment etc to are some of the popular factors.
Currencies are traded in pairs and each currency has its own symbol. For the Euro dollar- it is EUR, Japanese Yen - it is JPY, for the Pounds Sterling - it is GBP, and for the Swiss Franc - it is CHF. Hence, EUR/USD would be Euro-Dollar pair. GBP/USD would be pounds Sterling-Dollar pair and USD/CHF would be Dollar-Swiss Franc pair and so on and so forth.
You will always see the USD quoted first (with exceptions like Pounds Sterling,You are not allowed to view links. Register or Login, Euro Dollar, Australia Dollar (AUD) and New Zealand Dollar (NZD). The first currency quoted is called the base currency and the U.S. dollar is regarded as the central currency of the Forex market and it is part of majority of the forex transactions happening across the globe.
So now coming back to our basic lesson - how are these currency pairs quoted on the Forex market and how to read the quotes? The Forex trader will see two distinct numbers on all Forex quotes. The first one is the bid and the second is offer or asking price.
When you are reading these numbers you will notice that there exists a difference between the bid and the offer price. This difference is what is termed as the spread.