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FA
28 December 2020,06:37
What is Forex
28 December 2020, 06:37
We mentioned above that currencies are always traded in pairs; this is because when you buy one you’re essentially selling the other and vise versa.
So how do you 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
Trade forex, indices, metal, and more at industry-low spreads and lightning-fast execution.
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