Forex Trading:How To Read A Forex Quote
Tuesday, 29 July 2008
FOREX is a summary of the name of "foreign exchange". Foreign exchange market is to stop non-cash in the market in terms of currency Nations is bought and sold, usually through brokers. For example, you can buy the euro, with the payment of U.S. dollars, or sell the euro and the Japanese yen.
The value of your foreign investment increases or decreases because of changes in currency exchange rates or the exchange rate of foreign currency. These changes often result from economic and political factors, such as oil prices or political upheaval. A better understanding of how the exchange rate could affect the value of your foreign investment, and this article shows you how to read a quote FX.
Exchange rates expressed in the always couples. In the following example, as a "spouse" of currencies are the U.S. dollar and the euro. Forex Quote U.S. dollars / euros = 265.50, means that one dollar is equivalent to 265.50 euros. To the left of the currency / (U.S. dollars in this case) is referred to the base currency and its value is always 1. Currency for the right / (Euro in this case) be referred to as counter currency. In this example, could buy one U.S. 265.50 euros, since this is the stronger of the two currencies.
Because the U.S. dollar as the Central Bureau of foreign currency exchange market, is always treated as the base currency in any Forex is cited as one of the spouses. Incidentally, the U.S. dollar has been involved in nearly 90% of all forex transactions.
In this example, as a "spouse" of currencies are the Japanese yen and euro. Forex Quote Yen / = 175.10 euros, meaning that one Japanese Yen which is equal to 175.10 euros. To the left of the currency / (JPY in this case) is referred to the base currency and worth 1. Currency for the right / (Euro in this case) be referred to as counter currency. In this example, one can purchase 175.10 Japanese yen euros, since this is the stronger of the two currencies.
Objective of any system of currency trading is to profit from foreign currency movements. This requires the provision of adequate training in the FX basic principles, such as that the technical analysis, using maps and FX / loss tools, and keep with the latest political and economic events. In the sense of meanings, Forex training never ends.
Labels: forex
posted by Master @ 03:36,