QUOTES IN FOREX.

QUOTES IN FOREX

Currencies are always traded in pairs; this is because when you buy one you’re essentially selling the other and vice versa.

SO HOW DO WE READ AN FX QUOTE

E.g. EUR/USD = 1.1200 this means that 1 € = 1.12 $

EUR; in this quote EUR is known as the base currency.

USD; in this quote USD is known as the counter or quote currency.

This quote is also referred to as a direct quote which is where US Dollar is the counter or quote currency

E.g. USD/JPY = 125.00 this means 1 $ = 125 ¥

USD; in this quote USD is known as the base currency.

JPY; in this quote JPY is known as the counter or quote currency.

This quote is also referred to as an indirect quote which is where US Dollar is the base currency