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Sunday 15 May 2011

Learning Currency Rates Quotes



Let me tell you the Forex quotes and its uses in Forex Market. You Guyz already Knows that the currency are traded in pairs.
                 If it is written like this USD/EUR it means USD Is Selling and Eur Is buying  Everytime the left side currency is base currency and the right side currency is the counter currency Left side currency is for sell and right side is for buy when ever you see
 USD/EUR=1.8975^  it means 1 USD=1.8975 EUR The Base Currency Is Always 1 remeber it  if the arrow goes down it means USD Is Weak and Eur Is now Strong.


Bid Price: The Bid price is at which you sell the base currency


Ask Price: The Ask Prices is at which you buy the base currency


Spread: is the difference between the bid and the ask price.
Margin trading: assumes that Forex dealing is based on the margin, the collateral, and the provided leverage.
This means that a client places minimal cash deposit, much smaller than the underlying value of the contract, but can operate with larger amounts sufficient to enter the real market. Such credits are provided by the brokerage companies besides their informational services and make it possible for a trader to enter into positions larger than his/her account balance. This collateral is typically referred to as margin.
PIPS:Pips(percentage in point) is the 4 digit after decimal. 

These are some forex quotes which i have told you is useful for trading in Forex Market.I also annexed a video to teach you so check it it is also helpful.  


                           

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