Lesson 6: FOREX Quote

FOREX means foreign exchange and it is all about buying and selling currencies simultaneously. That being said lets consider a quote example:

You an easily outline the following main things:

• Base currency= EUR
• Bid price = 1.3276
• Ask price = 1.3281
• When selling Euros, 1 Euro =  1.3276 US Dollar        
• When buying Euros,  1.3281 US Dollar = 1 Euro
• Spread = 1.3281-1.3276 = 0.0005
• Pip=0.0001

Let's look at another example and try to outline the main things yourself. No peeking!!! 

• Base currency= EUR
• Bid price = 125.96
• Ask price = 126.00
• When selling Euros, 1 Euro =  125.96 Japanese Yen  
• When buying Euros,  126.00 Japanese Yen = 1 Euro
• Spread = 126.00 -125.96 = 0.04
• Pip=0.01

Introduction To Forex