If you want to make money in Forex, it is important that you understand the information provided in the Forex quotes.
Forex quotes differ in format from the more conventional stock quotes, and they can be a bit difficult to understand, when you first start trading in the currency markets. Thus, a first step in your car shopping & # 39; EASURES Forex – learn to read quotes provided by the exchange. Quote divided into different parts, and it is important to understand each part and the information it provides.
The first part of the quotes in the Forex market – this is what "across" defines the two currencies, which considered this quotation. For example, if the quote shows the USD / GBP, this means that the quote shows the relationship between the US dollar and the British pound.
The next part of the price in the Forex market gives you the actual price of this currency pair, for example, if the quote USD / GBP is 0.50236, which means that for every dollar you get 0.50236 British pounds. While that is good, the following information is perhaps the most important. They show the price of the offer and demand, sometimes called the bid and ask price.
This is exactly the same information that is usually indicated in the share prices, if they are listed on the stock market, the price rate – is the price at which the currency is sold, or if you wish to sell the US dollar against the British pound and the price rate of 0.50243 is the price in pounds, that other dealers are willing to pay for your dollar. Value proposition at a price – the price at which other dealers are willing to sell you the currency, so if the price is quoted 0.50256, the price in British pounds, you have to pay for each dollar. The difference between the bid and ask price is known as the spread. This Commission, which take currency dealers to cover their costs in providing you with their services.
With most of the major brokerage currency exchanges can be traded in more than 60 different currencies, but the vast majority of trading is done by what is called basic, consisting of the US dollar, British pound, euro, Japanese yen, Swiss franc and Canadian dollar. Most speculators tend to specialize only in one or two other couples, for example, I'll only trade USD / GBP.
When you first begin to trade in the Forex market prices, this may seem a little intimidating, but just take your time and you will quickly develop a trust and be able to read them without problems.