Read the quotes is very easy. But if we do not understand can be confusing, too. Quotes on a regular forex transactions are written in conjunction with his ever-changing pairs follow the market from time to time (running/real time)
How to read it pretty simple when we remember these two things:
1. The first currency is the base currency referred to him
2. The Base currency value is always 1.
For example: GBPUSD 1.5831 means 1 GBP value is 1.5831 dollars. When is the next time on the GBPUSD 1.5841 it means GBP strengthened 10 points and the dollar weakened 10 points.
Each pairs there are two prices shown i.e. the purchase price (bid) and the price (offer). The difference between the two is called the spread. So, when we wore the above example, the GBP/USD there at 1.5831/35 it means that the selling price is GBP 1.5831 and Sharga purchasing 1.5835 Spreads here the value 4 (.. 35-... 31 = 4)
The spread is determined by the broker and its value varies between brokers with one another. Fewer spread makin good for investors. At GAIN Capital, spreads ranging between 2-5 points to 5 kinds of major currencies. For currency pairs traded rarely (minor currency) such as for example, NZDJPY spread could move up to 8 points due to the volume of transactions that are not too crowded.
In the picture above it feels quite describe how forex quotes display on a platform. Keep in mind again that forex trading is also there for commodities traded i.e. the currency itself. Well, if for example a GBPUSD display then that stuff is so GBP currency is USD while a comparison that shows the price of such goods at a sale price and bought it. So the currency that was written before acts as goods and currencies is behind as the deciding how value.
If you are a neophyte in the world of stock, then you will find a variety of unfamiliar terms that sounded awkward ditelinga. For that, BelajarForex has prepared a simple dictionary about unfamiliar terms in the world of forex is that you can access through this website.
Well, now it can read the forex quotes. See you in the next lesson.
