Base quote currency forex
A Forex Trading Bid price is the price at which the market is prepared to buy a specific currency pair in the Forex base quote currency forex market. This is the price that the trader of Forex buys his base currency in.
In the quote, the Forex bid price appears to the left of the currency quote. 47, then the bid price is 1. Meaning you can sell the EUR for 1. A Forex asking price is the price at which the market is ready to sell a certain Forex Trading currency pair in the online Forex market.
This is the price that the trader buys in. It appears to the right of the Forex quote. 47, the ask price us 1. This means you can buy one EUR for 1.
This signifies the expected profit of the online Forex Trading transaction. Ask Spread is set by the liquidity of a stock. What are Regulators and How to Choose a Good One? Currency is generally an accepted form of money, including coins and paper notes, which is issued by a government and circulated within an economy.
Used as a medium of exchange for goods and services, currency is the basis for trade. Directly put, ‘What is the value of the GBP against the USD? One currency normally has a greater value than the other. This is mostly reflected by a countries economic status. In the above example, the GBP is called the base currency and USD is called the quote currency. Conversely, when you sell the currency pair, you sell the base currency and receive the quote currency. So in the above example, the bid or buy price represents how many USD are needed to buy one unit of the GBP.
In previous articles, I mentioned go long and go short without properly explaining. That is what It basically means to go long or go short on a currency pair. GBP was going to gain value against the USD. GBP was going to lose value against the USD.
Traders buying currencies are referred to as Bulls. Traders Selling currencies are referred to as Bears. USD pair today, meaning the price is going up. USD pair and the forex chart is displaying the value of the GBP against the USD going up up and up. USD today meaning the pound price is depreciating against the dollar.