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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
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