Quotations

Many newcomers to the online Forex Trading currency market immediately scared of large amounts of data on the market. In fact, this is the most common barrier to newcomers. Quotes on Forex is very short, but contain much useful information. The following is an explanation that may mean quotation.

Forex quote is always based on any pair of currencies, of which one currency you are selling, and buying another. Identifies two prices: one for selling and one for the purchase. If you read the quotation, it might look like this: USD / JPY 106.52/56.
The first currency of the pair is called the base currency, the second - quoted. The base currency is always equal to 1 (in this case, 1 U.S. dollar). Number of quotes indicates the number of quote currency (Japanese yen), which you can buy for $ 1.

A number 106.52/56 - this is an abridged version of two numbers: 106.52 and 106.56. A smaller number - this is the price the buyer, more - the asking price. Price buyer shows how much a dealer will buy the currency. Price seller reveals how much does the dealer wants to sell the currency.

The difference between the buyer and the seller is called the spread, and each part is called the pip 0,01. In our example, the spread for the pair USD / JPY is 4 pip.