Currencies are quoted in pairs. The first listed currency is known as the base currency and the second is called the counter or quote currency. Currencies are quoted using five significant numbers, with the last placeholder called a point or a pip
For example a EUR/USD quote 1.3277/1.3282
Like all financial products, forex quotes include a "bid" and "ask" or a "sell" and a "buy" price.
By quoting both the bid and ask in real time, brokers ensure that traders always receive a fair price on all transactions. As in any traded instrument, there is and immediate cost in establishing a position. This cost will vary between the different brokers and is sometimes called "spread".
For example, USD/JPY may bid at 117.99 and ask at 118.04, this five-pip spread defines the trader's cost, which can be recovered with a favourable currency move in the market.
For example a EUR/USD quote 1.3277/1.3282
Like all financial products, forex quotes include a "bid" and "ask" or a "sell" and a "buy" price.
By quoting both the bid and ask in real time, brokers ensure that traders always receive a fair price on all transactions. As in any traded instrument, there is and immediate cost in establishing a position. This cost will vary between the different brokers and is sometimes called "spread".
For example, USD/JPY may bid at 117.99 and ask at 118.04, this five-pip spread defines the trader's cost, which can be recovered with a favourable currency move in the market.