CURRENCY PAIRS
Every Forex trade involves the simultaneous buying of one cur- rency and the selling of another currency. These two currencies are always referred to as the currency pair in a trade.
BASE CURRENCY
The base currency is the first currency in any currency pair in any forex trading. It shows how much the base currency is worth, as measured against the second currency. For example, if the USD/CHF rate is 1.6215, then one U.S. dollar is worth 1.6215 Swiss francs. In the Forex markets, the U.S. dollar normally is considered the base currency for quotes, meaning that quotes are expressed as a unit of US$1 per the other currency quoted in the pair. The primary exceptions to this rule are the British pound, the Euro, and the Australian dollar.
QUOTE CURRENCY
The quote currency is the second currency in any currency pair in any forex trading. This is frequently called the pip currency, and any unrealized profit or loss is expressed in this currency.
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