Let’s start with the basics of what Forex quotes are. As you know, the main element of trading at Forex exchanges are currency pairs. The list of pairs is available on the online platform and is often recorded as, for example, EUR/USD (Euro/USD). This is the quote to make it clearer – on the indicators one of the currencies is the base currency and is considered the price of one currency, presented in units of another. The base currency is written first and the quoted second. The base currency number means at what price a trader can sell it, and the second value indicates the amount at which the base currency can be bought for the quoted one. The difference between the sale and purchase prices of the base currency for the currency of the quote Forex online is called the spread. Online Forex quotes can be direct and inverse. And the main fact from the theory of currencies is that often on the Forex exchanges quotations of major currencies are considered against the U.S. dollar. Speaking of forward and reverse quotes, there is nothing unclear here, you just need to swap currencies. If in the previous quote we understood how much USD you can buy EUR for, in the reverse quote, these currencies change places. How to understand the forecasts of the quotes and use them in your trading.
Forex quotes online
Online Forex quotes are always very accurate and calculated to the accuracy of 0.00001. When trading currencies, it is important to understand and pay attention to changes in points, because each variable share of this – your profit or loss. Forex currency quotes online are available on every broker’s website, provided with the current indicator, the overall schedule and the actual growth or decline. Having studied the chart, you will understand at what moment and with what currency pair it is better to open a transaction, how profitable it will be and what forecasts to expect. Quotes are also available for stock indices, commodity markets and currency futures. In addition to the main indicators and rates, there is also a cross rate. This is the ratio of two currencies to the rate of the third one. It is also very often calculated against the U.S. dollar. Understanding the quotes allows the trader to easily analyze the market and predict possible changes in the rate. A beginner, who will be able to master the quotes, in the future it will be easier to conduct transactions of various complexity and react quickly to changes in the market in their favor.
As you can see, quotes are the basic information that a trader should master.