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How to Read the price in Forex

The forex world, not separated from the Buy and Sell (Buy and Sell). Each trader has the freedom to perform one action on which he was to gain profit. Buy can also be paired with the Bid or Long and paired with the Offer or Sell Short. So if you read an article about forex and there mentioned Bid or Long term, need not be confused because the two terms are the same as Buy or Buy.

Reading quotes is very easy. But if we do not understand can be confusing too. Quotes on forex transactions is usually written in conjunction with its pairs and always follow the market changes from time to time (running / real time).

I read it pretty simple when we remember two things:

1. The first-mentioned currency is the base currency (base currency)
2. Base currency value is always 1.

For example: USD / CHF 1.4623 means that 1 U.S. dollar is worth 1.4623 Swiss Francs. If the dollar the next time the value of the USD / CHF 1.4630 means that the U.S. dollar rose 7 points because they can buy more Swiss Franc.

Each pairs there are two price displayed is the purchase price (bid) and selling price (offer). The difference between them is called the spread. So, if we use the example above, USD / CHF 1.4623/28 that means selling prices are U.S. Dollars 1.4623 Swiss Franc and the purchase price is 1.4628. Spread here the value 5 (.. 28 -.. 25 = 5).

Spread is determined by the brokers and their values ​​vary from one broker to another. The smaller the spread the better for investors. In which we refer brokers have a competitive spreads, as in the MB Trading (spread according to market) and Gain Capital (fixed spread)

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