Understanding Forex quotes

Discussion in 'General Forex Discussion' started by alnazer, Feb 19, 2013.

  1. alnazer

    alnazer ECZ Newbie

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    Read a Forex quote may seem a bit confusing in the beginning. Nevertheless, it is already quite simple if I remembered two things: 1) placed first currency is called the base currency) and 2 (the value of the base currency is always 1).

    U.S. dollar is the key element in the forex market and is usually regarded as currency 'base' in quotations. For "major currencies", this includes USD / JPY and USD / CHF and USD / CAD. In these currencies However other quotations are expressed in the form of a unit of the U.S. dollar against the value of the other currency in the pair. For example, the dollar / yen 110.01 means that the U.S. dollar is equivalent to 110.01 yen unit.

    When the U.S. dollar is the base currency, the pair when the price moves to the top of this means high value of the U.S. dollar and the decline in the value of the other currency. If prices rose aforementioned dollar-yen to 113.01, this means that the U.S. dollar is stronger now any able to buy more yen more than it was previously.

    There are three exceptions to this rule are the British pound and the Australian dollar and the euro. In these cases could see a quote such as GBP / USD GBP / USD 1.7366 means that one British pound equals 1.7366 U.S. dollars.

    In these three currency pairs and where the U.S. dollar is not the base currency, the rise in prices means the U.S. dollar fell because more American dollars can now be bought in against the British pound, euro or Australian dollar per share.

    In other words When goes a bid to top currency pairs, this means increasing the value of the base currency while when prices fall display, this means twice the base currency.

    Currency pairs that do not include the U.S. dollar are called cross currencies, but the rules keep one. For example, the EUR \ JPY 127.95 means that one euro equals 127.95 yen.

    Regret trading Forex you'll see a quote always two sides consists of 'tender' and Q '. 'Tender' is the price at which you can sell the base currency (at the same time buying the counter currency). Price 'question' is the price at which you can buy the base currency (at the same time selling the counter currency).
     
  2. Robert Dudash

    Robert Dudash ECZ Member

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    Regulated forex brokers are constrained by the law to not blend their speculators' funds in with their organizations' funds. This implies the broker ought to have a different account to keep its customers' money. At no point would it be able to utilize these funds to back their own needs. Furthermore, if a brokerage firm fails, it cannot utilize its customers' funds to repay its creditors. This money should just be utilized to repay its customers. Along these lines, your money as a trader will be protected, no issue what befalls the broker.
     
  3. Neil Dome

    Neil Dome ECZ Member

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    Education is a must thing for forex trading. A trader should complete his education before starting his trade. Otherwise it can be dangerous. He can lose all his capital because of little knowledge. To complete his education there is only one better way and this is to follow a financial adviser like AtoZ Markets. It will help the trader to know all the important techniques easily.
     
  4. Cris gale

    Cris gale ECZ Member

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    For scalping low spread is good. While choosing the scalping broker scalpers should choose the low spread broker as it helps to earn small money in a short time. But all the brokers don’t allow low spread in their platform. Forex4you is a true STP trading broker who allow lowest trading spread from only 0 pips, with instant market execution system so as a scalper now I am earning good sum of money in a shorten period.
     
  5. Mark Burgess

    Mark Burgess ECZ Member

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    Trading is not like a game. If you don't take it seriously you can loss all your investment. Before taking decision you need to collect all the information about forex. Without information trading is quite impossible. As a trader I collect information and ideas from AtoZ Markets. I am pleased with them because of their services and facilities.
     
  6. John Hussy

    John Hussy ECZ Member

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    I also emphasis on demo account but not for all time, the newcomers we have lost interest after passing a sometimes, so we can start mini account instead of demo trading. it will be better for us to gain more experience or live knowledge . we can use high leverage in demo to see the performance how it works.
     
  7. Albert Brown

    Albert Brown ECZ Member

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    Forex trading is a very profitable business. Anyone can start trading in the forex market and earn a lot of money. Forex is not difficult if you have enough knowledge about forex. If you want to start trading in the forex market then you have to understand forex quotes. Gaining proper knowledge about forex is a very important thing for a trader. I trade with Eurotrader. They are a very reliable broker. They are one of the best brokers I have ever worked.