Making Sense of Forex Quotes and Pips

The currency listed first is known as the base currency (being the base of the trade), the second is called the counter, or quote currency. The value of the pair is a ratio of one unit of the base currency to it's equivalent in the quote currency. Supposing that you expect the value of the base to rise against the quote, buy the base currency and sell the quote currency, and vice versa.

The Bid price is the price you can sell your currency for, while the Ask price is the price at which you can purchase the currency. This spread means that if you were to buy a great deal of currency, then sell it before there had been any change in the relative values of the two currencies, you would lose money on the trade, but the dealer would make money from the trade. Read More Here

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