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How to determine Forex quotes?
Forex quotes refers to how currencies are presented in the Forex market. When you look at Forex quotes, you’ll notice that all currencies are quoted/presented in a pair – for example, EUR/USD, USD/CAD or USD/JPY. This is because when you buy a currency you are selling another one at the same time.
The first currency in the pair is known as the base currency and the second currency as the quote/counter currency. For example; USD/CAD; USD(base currency) and CAD(quote/counter currency). The second currency is called the quote because it is used to determine the value of the other in the pair.
lets see; the base currency is always equal to one unit. The second currency/quote currency gives the value of what one unit of the base currency is equal to.
like i said earlier, to trade currencies, you buy one simultaneously selling the other. So, if for instance you are to buy USD/CAD, you must know how many units of CAD you should sell to buy one unit of USD.
As a trader you will not be required to determine this because it is already calculated for you. This is exchange rate. What is important is to know when to buy and sell and must have a reason for doing so.
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Forex quotes are always presented on Forex boards in Forex bureau exchanges. In the Forex market, they are provided by all brokers on the trading platform. The Forex quotes are not yours to determine so you not worry about that.
What is important is to know ,how to read these Forex quotes and their exchange rates so that you are able to make right decisions on which currency you should buy or sell.Forex quotes help to bring the comparison between different currency values. Currencies are presented and traded in pairs. The first currency is the base currency and is equivalent to 1 unit in value. The second currency in the pair is the quote/counter currency and is equivalent to that value 1 unit of the base currency is equivalent to; hence the exchange rate. You buy a currency when it appreciates in value and sell it when it falls in value.
some of the common currency pairs traded on the Forex market include, USD/JPY, USD/CAD, GBP/USD, EUR/JPY, EUR/USD, EU/RCAD, GBP/CAD, AUD/USD, NZD/USD, USD/CHF and many others. -
How do you determine a lot size in Forex trading?
Lot size is determined depending mainly on the size of your account. This depends on how much money you start with as your capital deposit.
Forex accounts are grouped into different classes depending on the minimum amount required as a deposit.A lot simply refers to the number of units you can buy or sell in a trade or size of a trade you can place when trading. It can be a standard lot, mini lot, micro lot or nano.
A standard lot is equivalent to 100,000 units worth $10
A min account is equivalent to 10,000 units worth $1
A micro lot is equivalent to 1000 units worth $0.1
A nano account is equivalent to 100 units worth $0.01
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