Foreign currency trading quotes always show up in pairs of two currencies.

This means a currency quote is made of two pairs of currencies. With this example the first currency is called the Base Currency, and the second currency is called the Pricing Currency.

Definition of "Lot" in Forex Trading

When trading foreign currenciesyou are always buying and selling the base currency. This means you are buying 1 dollar and selling at the same time The US dollar is usually the base currencymeaning the standard currency which is used when evaluating other currencies. For most major currency the first to appear, the base currency, is the USD.

In all the previous currency trading quotes you see that a currency is measured against the US dollar. The Euro, British pound and Australian dollar are exceptions. So the EUR, GBP and the AUD are shown before the dollar, and are considered base currencies.

Forex - All Trades Winners

While you trade foreign currencies you will hear the terms rising quote or lot meaning in forex quote quite a lot. A rising currency trading quote means that the base currency has appreciated, as you can buy more currency with it.

A weakening quote means the exact opposite. So while the direction of the rising quote is up, the direction of the weakening quote is down. Currency trading quotes that do not involve the dollar are referred to as cross currencies.

You might also see a double quote, one marked as 'ask' and the other as 'bid'. The 'bid' quote represents the price you can sell the base currency for and the 'ask price' represents the price you can sell the base stock market hours november 22 1963. Home Currency Trading ForexTerminology Market Order Types Technical Analysis Reading Charts Fundamental Analysis.

Lot Definition | What Does Lot Mean

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The major currency trading quotes are presented like so: John Roberts, Editorial Staff October 26, State Street Cuts Jobs After Earnings Miss Estimates http: South China Sea energy riches beckon http: Philip Morris Int'l http: Download our forex trading software - Receive a FREE Demo account by AvaTrade Apply Now. Forex Pro Account Discover a wide range of trading benefits and make your trading experience a more enjoyable and successful one.

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