Thursday, February 25, 2016

Reading a Forex Quote

If you are relatively new to the foreign currency exchange market, reading a forex quote might be one of the few things you’re struggling with. You might be unsure of what do they mean and might feel confused whenever you encounter them. But worry not, in this article, we will teach you how to properly read forex quotes.

In the forex market, each currency quote is quoted in the pair. Some examples of currency pairs are EUR/USD or USD/JPY. Currencies are quoted in pair simply because, in the forex market, buying one currency means you’re selling a different one also. For example the EUR/USD currency pair means that you have to pay a certain amount of USD in order to buy one EUR.

Let’s make an example:

If, for example, the USD/CAD = 1.36, it means that if you want to buy 1 US dollars, you will need to pay 1.36 Canadian dollars to do so. On the other hand, if you decided to sell your USD, you will receive 1.36 Canadian dollars.

The currency on the left side of the pair is called the “base currency”, while the currency on the right side of the pair is called as the “quote” or “counter currency”.

Learn more about the forex market and further understand what is forex by referring to our educational blogs and articles. See who the best forex brokers are, visit to find out!

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