Now Come and take a practical training to read the exchange
rate.
As mentioned above, the currency always appear in the form
of (pairs), for example, EUR / USD is any pair euro dollar, or, for example,
USD / CHF is any pair francs, and the reason for their appearance in this way,
that every deal will be out, will buy currency and sell the other.
Come with us now to learn, how to read the exchange rate of
the trading screen!!
Exchange rate simply, is the ratio of the value of the
currency against the other currency.
Of the display of exchange rates we have seen the exchange
rate pair
EUR / USD exchange rate is 1.2853
If the exchange rate of EUR / USD means as follows...
Since the euro is the main currency in the pair (the main
currency always appear on your left hand)
It can only buy 1 euro, compared to what we see in the U.S.
dollar price visible in front of us on the trading screen, which we can sell
U.S. dollars at 1.2853 in order to buy 1 euro.
In other words, if the value of 1 euro = 1.2853 U.S.
dollars.
In other words, it can only buy 1 euro selling $ 1 and 28
cents, at 53 Point.
Here's a question...
Why did not you read the price 1.2850 and read 1.2853? And
what are these 3 points?
To answer this question, we must first know that these terms
are important:
(1) Base currency.
(2) Anti-currency (reading currency).
(3) Spread.
(4) Point.
Base Currency:
Is the first currency in the pair, it is in the left side of
the Display pair in the exchange rate.
In this example, the exchange rate of the EUR / USD is equal
to 1.4503 this means is that the euro is the base currency. This means that
every 1 euro you can buy it for U.S. $ 1.4503.
Anti-currency:
Is the second currency on the right side in the currency pair?
And it is known as the "reading" currency which we
use to read the price, as I have already mentioned just, and also call point
currency because we can calculate the number of points which is driven by the
pair.
We say that the "anti" currency is equal as well
as against the base currency.
For example, EUR / USD is at 1.4503 exchange rate of the
currency here is the anti-dollar coin, it means that every point 1.4503 dollars
equal 1 euro only.
Spread:
The difference between the purchase price and the selling
price is known spread or, point’s difference, it is brokerage firm fare.
For example, in the exchange rate of EUR / USD was
1.4503/1.4500 but will read verbally without the first three digits of the
three as follows
"00/03" if the difference was only here 3 Points.
*the relation between spread pays with the purchase or sells
the deal...
When you buy a currency you will pay the difference spread
between the two currencies because you pay the difference until you open the
package and enter the market, and do not pay anything when you go out, but when
you sell the currency you will not pay the spread between the two currencies
when you open the deal, but will pay this spread when you want to close the
deal and get out of the market.
Point or pip:
Point is the smallest unit of price for any coin and counts
us our profits and our losses... Almost all currency pairs include five
numbers, and more couples have a decimal point after the first digit
For example, EUR / USD is in the exchange rate of 1.4503
In this case point equal to one smaller change in the fourth
decimal place and is the 0.0003
If the currency in any anti pair where the USD
The value per point always equals to 1 ÷ 100 cents.
With the exception of one pair of prominent USD / JPY which
point equals to $ 0.01.
Do we have succeeded in that you get the information about
how to read the exchange rate simply?
We wish that...
If your answer is yes...
We are very happy, because by this you has grabbed the first
thread your way to Forks, because most new traders even in spite of the passage
of time on their experience of the accounts of the demo and incomes in some of
the trade, you may not know how to read the exchange rate for the currency pair
more than one way, but may not know already.
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