Forex quotes can cause confusion to inexperienced traders. These quotes are a little bit different than what you can find in other markets and you may need some guidance. Here are the basics of how to read Forex quotes.

Base and Quote Currency

In order to properly read a Forex quote, you are going to need to understand the difference between the base and the quote currency. For example, you will see a currency pair such as the EUR/USD. The base currency is always going to be the first one in the pair and the quote currency is going to be the second one. In this example, the EUR is the base and the USD is the quote currency.

Example

You will see something like EUR/USD = 1.3567. This is essentially the exchange rate between the Euro and the United States Dollar. This would mean that you have to give 1.3567 dollars to get one Euro. 

Bid and Ask

You are also going to see two different prices at once. For example you might see EUR/USD = 1.3567/1.3569. The first number is the bid and the second is the ask price. The lower number is what traders are willing to buy for and the higher number is what sellers are willing to sell for. 

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