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Quotes

Lesson 6: FOREX Quote

FOREX means foreign exchange and it is all about buying and selling currencies simultaneously. That being said lets consider a quote example:

EUR/USD

Bid

Ask

1.3276

1.3281

Sell

Buy

You an easily outline the following main things:

  • Base currency= EUR
  • Bid price = 1.3276
  • Ask price = 1.3281
  • When selling Euros, 1 Euro =  1.3276 US Dollar        
  • When buying Euros,  1.3281 US Dollar = 1 Euro
  • Spread = 1.3281-1.3276 = 0.0005
  • Pip=0.0001

Let's look at another example and try to outline the main things yourself. No peeking!!! 

EUR/JPY

Bid

Ask

125.96

126.00

Sell

Buy

  • Base currency= EUR
  • Bid price = 125.96
  • Ask price = 126.00
  • When selling Euros, 1 Euro =  125.96 Japanese Yen  
  • When buying Euros,  126.00 Japanese Yen = 1 Euro
  • Spread = 126.00 -125.96 = 0.04
  • Pip=0.01