quotes
Quotation is the ratio of two currencies, which expresses the value of one currency through the other. Quotation, in other words, is the price at which you can buy or sell any currency.
In the quotation allocate the base currency and currency quotes. The base currency is indicated first and is the “numerator” of the quote. The quotation currency is in second place and is the “denominator”. For example, in the USDCHF currency pair, the dollar is the base currency, and the Swiss franc is the quote currency. To understand this quote should be as follows: for one dollar give so many Swiss francs. All forex transactions are made with the base currency. So, if we are talking about buying one lot (100,000 units) for the USDCHF currency pair, I mean buying one hundred thousand dollars for francs.
At each quote there are two prices - the purchase price of the currency, which in English is called Ask, and the sale price of the currency, called Bid. If we have the following quote:
USDCHF 1.0362 1.0365
it means that:
for one dollar now give 1.0365 francs at purchase. That is, in order to buy one dollar, you need to pay 1.0365 francs;
for one dollar now give 1.0362 francs on sale. That is, if we sell one dollar, we will get 1.0362 francs for it.
The difference between the bid and ask prices is called the spread. It provides part of the broker's profit from conducting currency exchange transactions. Spread, as well as the change in the price of a currency is measured in points. The price is usually specified with an accuracy of one ten thousandth (0.0001). One ten thousandth is one point. For example, if the quote of the above currency pair has changed and now looks like this
USDCHF 1.0382 1.0385,
this means that the price of the dollar rose by 20 points (compared to USDCHF 1.0362 1.0365).
Quotes are divided into direct and reverse. Direct quotes are quotes that express a certain amount of national currency per unit of foreign currency. In the reverse quotation, the amount of foreign currency per unit of national currency is expressed. However, in today's market it is considered to be a direct quote, in which the base currency is the dollar. The dollar is always the first. The exception is the euro and the pound sterling. That is, currency pairs are as follows:
USDJPY,
USDCHF,
USDCAD,
but:
')
EURUSD,
GBPUSD,
EURJPY,
GBPJPY.
If there is no US dollar in the currency pair, it displays the cross rate. Cross-rate is the ratio between two currencies, which is expressed through their relationship to a third currency. Cross rates are, for example, currency pairs CADJPY, NZDCAD, CHFJPY.
In the quotation allocate the base currency and currency quotes. The base currency is indicated first and is the “numerator” of the quote. The quotation currency is in second place and is the “denominator”. For example, in the USDCHF currency pair, the dollar is the base currency, and the Swiss franc is the quote currency. To understand this quote should be as follows: for one dollar give so many Swiss francs. All forex transactions are made with the base currency. So, if we are talking about buying one lot (100,000 units) for the USDCHF currency pair, I mean buying one hundred thousand dollars for francs.
At each quote there are two prices - the purchase price of the currency, which in English is called Ask, and the sale price of the currency, called Bid. If we have the following quote:
USDCHF 1.0362 1.0365
it means that:
for one dollar now give 1.0365 francs at purchase. That is, in order to buy one dollar, you need to pay 1.0365 francs;
for one dollar now give 1.0362 francs on sale. That is, if we sell one dollar, we will get 1.0362 francs for it.
The difference between the bid and ask prices is called the spread. It provides part of the broker's profit from conducting currency exchange transactions. Spread, as well as the change in the price of a currency is measured in points. The price is usually specified with an accuracy of one ten thousandth (0.0001). One ten thousandth is one point. For example, if the quote of the above currency pair has changed and now looks like this
USDCHF 1.0382 1.0385,
this means that the price of the dollar rose by 20 points (compared to USDCHF 1.0362 1.0365).
Quotes are divided into direct and reverse. Direct quotes are quotes that express a certain amount of national currency per unit of foreign currency. In the reverse quotation, the amount of foreign currency per unit of national currency is expressed. However, in today's market it is considered to be a direct quote, in which the base currency is the dollar. The dollar is always the first. The exception is the euro and the pound sterling. That is, currency pairs are as follows:
USDJPY,
USDCHF,
USDCAD,
but:
')
EURUSD,
GBPUSD,
EURJPY,
GBPJPY.
If there is no US dollar in the currency pair, it displays the cross rate. Cross-rate is the ratio between two currencies, which is expressed through their relationship to a third currency. Cross rates are, for example, currency pairs CADJPY, NZDCAD, CHFJPY.
Source: https://habr.com/ru/post/30337/
All Articles