How to learn to understand Forex currency quotes.

Interested in trading in the foreign exchange and stock markets?

A quote is the price of a currency in relation to another currency at which a currency is exchanged.

The seller (trader) buys or sells at this quotation price.

The quote consists of two prices - the price at which the trader is ready to buy the currency, and the price at which the trader is ready to sell the same currency.

From the latest purchase or sale quotes, market makers take the current market value of the currency.

Two currencies participate in the transaction - the counter currency (the price of which changes all the time) and the fixed currency (the base one, the price of which is constant).

An increase in the quotation of the counter currency leads to an increase in the number of the base, and vice versa, a decrease in the quotation leads to a decrease in the number of the base.

This is called a change in currency positions. When they say "the dollar is paired with the euro, Forex today is trading at ...", it means that the dollar is the base currency and this mark (quote) is the price of the euro in dollars.

International standards for the designation of such currency pairs suggest, for example, this type: a pair of "dollar - euro" - USD / EUR or a pair of "franc - dollar" - CHF / USD.