Reading forex quotes is very easy. Yet, quotes shown may be confusing some people who are not familiar.
Quote of the forex transaction is usually written together with her partner and always follow the market changes from time to time.
Reading quotes are fairly easy and you only need to remember two things:
1. Currency is the base currency first written it.
Example: EURUSD, then its base currency is EUR
2. Base currency is always worth 1.
For example, if EURUSD is 1.4573 means that EUR 1 worth USD 1.4573. If the displayed price is 1.4583, means EUR strengthened 10 points. Quotation is usually written in pairs, ie the purchase price (bid price) and selling price (ask price). The difference between the two prices is called the spread. So, for example you read 1.4573/77 EURUSD quotes means selling price of GBP is 1.4573 and the purchase price is 1.4577. Spread here is 4 points.
Spread is determined by your brokerage firm and its value varies between one company with another company. The smaller the spread is better for investors. Keep in mind that forex trading is traded is the currency itself. So for the EURUSD, then EUR is the "trading merchandise" while the USD is determining the price of EUR itself.
