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17
May

A forex quote consists of many small parts. They present a lot of information that is meant to be read in fast glance. Learning to read this information quickly is one of the most basic forex skills there is. Some of these items will seem obvious, and some much less obvious.

Currency Pair
The currency pair should be the first thing you see when you read a forex quote. This lets you know which currency pair the quote represents. The currency on the left side of the slash is the quote currency, and the currency on the right side of the slash is the base currency.

Quote Time
The quote time tells you exactly what time it was that the quote was rendered. Quotes are updated every few seconds in most cases.

The Low Price
The low price shows you the lowest price of the trading day.

The high price

The high price shows you the highest price of the trading day.

The pip value

The pip value is the value per pip if you open a one lot trade. This quote is from the FXCM micro platform and it is a US Dollar based account. Since this is a dollar based pair, one microlot would be worth 10 cents per pip for a trade on this pair.

The bid price

The bid price is the price your trade will open at if you submit a buy or a long trade.

The ask price

The ask price is the price your trade will open at if you submit a sell or short trade.

Pipettes are fractional pips. Many brokers now quote pips fractionally. A pipette is equal to 1/10th of a pip.

The lot setting is for one click trading. It shows you how many lots your order will have if you have one click trading enabled. One click trading allows you to set default parameters for your trades and subsequently open them with one click.

Rollover the daily payment or charge of interest on a currency pair. Some currency pairs have an interest rate differential between the two currency pairs. In this specific case the rollover quote is showing what you would pay or receive if you held 10 microlots of this currency pair. If you were buying this pair you would be credited $1.11 per day for each 10 lots you held. If you were selling this pair, you would be charged $2.49 per day.

The spread shows you how many pips you will pay to the broker for opening your trade. It is the difference between the price you can buy at and the price you can sell at.

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  2. Trading Major Pairs
  3. Forex Basics
  4. Why Do Forex Traders Lose Money
  5. Forex Orders
Category : Forex Currency Trading

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