Quotes, How to Read The Price in Forex - ForeXposed


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Saturday, September 2, 2017

Quotes, How to Read The Price in Forex

Reading the quotes is very easy. But if we do not understand can be confusing. Quotes on a regular forex transactions are written concurrently with the pairs and always changing to follow the market from time to time (running/real time).

How to read it pretty simple, if we are able to remember these two things:
  1. The first currency is the base currency. 
  2. The Base currency value is always 1.
For example: GBPUSD 1.5831 means 1 GBP, its value is 1.5831 dollars. When is the next time on the GBPUSD 1.5841, it means the GBP strengthened 10 points and the dollar weakened 10 points.

Each pairs there are two prices shown, i.e. the buying price (bid) and the selling price (offer). The difference between the two is referred to as a spread. So, if we use the above example, the GBP/USD was at 1.5831/35, it means that the selling price is GBP 1.5831, and 1.5835 is purchasing prices, The Spreads value here is 4 (.. 35-... 31 = 4).

The spread is determined by the broker, and its value varies between brokers with one another. Fewer spread is more good for investors. At GAIN Capital, spreads ranging between 2-5 points to 5 kinds of major currencies. For currency pairs that rarely traded (minor currency) like NZDJPY, spreads could move up to 8 points due to the volume of transactions that are not too crowded.
Quotes, How to Read The Price in Forex
In the image above it looks like enough already described how the forex quotes display on a platform. Keep in mind that in return, forex trading is also there for commodities that are traded. Well, if so then the GBPUSD commodities is GBP, while the USD is the currency comparison that shows the price values. So the currency written in front acted as a commodity, and the currency on the back as a determinant of how much it's worth.

If you are a beginner in the world of stock, then you will find a variety of unfamiliar terms that sounded awkward in the ear. To that end, we has prepared a simple dictionary about foreign terms in the forex world you can access through this website.

Well, now I hope you can read the forex quotes. See you in the next lesson.

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