How to read forex quotes How to read forex quotes

Currencies always come in the form of currency pairs, such as the British pound, the US dollar, or the US dollar, the Japanese yen. The reason they come in pairs is that in every forex trade, you are selling another currency at the same time.

When you buy, the exchange rate tells you how much you have to pay to buy one unit of the base currency. In the example above, you have to pay USD for £1.

When you sell, the exchange rate tells you how many units of the quote currency you have to get to sell one unit of the base currency. In the above example, you have to spend US dollars to buy one pound.

The base currency is the ** or "basis" for selling

If you're EURUSD, it simply means that you're buying the base currency and selling the currency at the same time. In the words of the primitives, "** euros, sell dollars." ”

If you think that the base currency will (appreciate) relative to the currency, you will have the currency pair. If you think that the base currency will fall in value (depreciate) relative to the ** currency, you will sell the currency pair.

When buying and selling foreign exchange, one currency must be sold at the same time as another currency. The two currencies are not separated.

Base currency vs. settlement currency.

As long as you master two basic knowledge points, it will become very convenient to read**:

1) The currency in front is the base currency, and the currency in the back is the settlement currency.

2) The base currency is always in units of 1.

Forex** is actually the exchange rate of two currencies, or a ratio. For example, the U.S. dollar yen 80 78 80 08 refers to the exchange rate of the U.S. dollar for the Japanese yen, or the yen for the U.S. dollar. Since the bank's ** is reported with reference to the real-time exchange rate of the international financial market plus a certain range of bid-ask spreads, the exchange rate changes with the changes in the international market.

There are two ways to quote foreign exchange rates: direct pricing and indirect pricing. The foreign exchange rate is divided into ** price and selling price.

Both "sell" and "sell" are from the bank's point of view, and are aimed at the previous currency in **, that is, the bank** of the previous currency and the ** of selling the previous currency**. So, from the perspective of our remitters, it's the opposite, because if you sell a certain currency, it's the best currency for the bank.

Have you already dizzed yourself, let me teach you a trick! Putting all this complex theoretical knowledge aside, just remember one thing: buy expensive, sell cheap.

When you want to buy a certain currency, use the exchange rate that is not favorable to you in these two **, that is, the more expensive **; When you want to sell a certain currency, you should also use the exchange rate that is not favorable to you of the two**, that is, the cheaper **. For example, the exchange rate of the US dollar and the yen is 80 78 80 08, if you want to sell dollars, use **80 78 for less yen, that is, 80 78 yen for 1 dollar, if you want to sell yen, use **80 08 for more yen, that is, 80 08 yen to exchange for 1 dollar. How about it, it's easy!

In the forex market, the exchange rate is either for the previous currency in the exchange. For example, the ** of the US dollar yen 5 minutes ago was 80 78 80 08, which means that 1 dollar can be exchanged for 80 78 yen, if the current ** of the US dollar yen is 80 10 80 30, it means that 1 dollar can now be exchanged for 121 10 yen, compared with the ** 5 minutes ago, the **** of the dollar against the yen, that is, the unit dollar can be exchanged for more yen; On the contrary, if the current ** of the US dollar and the yen is 80 38 80 68, it means that the current 1 US dollar can be exchanged for 80 38 yen, compared with 5 minutes ago, the **** of the US dollar against the yen, that is, the yen exchanged for the unit dollar is less than the last **.

When looking at the foreign exchange rate, these numbers represent the exchange rate, which means that 1 pound = 10*CNY.

1. If you buy pounds from the bank, then you have to look at the selling price, the so-called "sell" is that the bank sells the foreign exchange it holds to you.

2. If you want to sell your own foreign exchange to the bank, then it depends on whether your foreign exchange is cash or spot exchange, in layman's terms, cash is that you are now holding the pound banknote in your hand, at this time you go to the bank to exchange RMB, that is, with the "cash price", also because the bank to you ** foreign exchange, so called "**price". And the spot exchange is what you have, the foreign exchange is already stored in the bank, you don't take the cash, at this time you go to the bank to change the yuan is to use the "spot exchange price".

3. Take the selling price: For example, if you take 1,000 yuan to exchange for pounds, then you can exchange pounds for 1,000 pounds, so you can exchange pounds for pounds.

4. As for the benchmark price and the converted price of the Bank of China, it will not be used when purchasing foreign exchange.

Forex**, in both directions**, taking USD SF= as an example, the former (USD) is the base currency or also known as the **currency, and the latter (CHF) is the **currency.

The numerical former (the exchange rate of the base currency of the ** side (** USD pays Swiss francs for the base currency), the latter is the exchange rate at which the ** side sells the base currency (the US dollar is charged for the Swiss franc when selling the base currency), and the difference between the buy and sell price is used as the profit of the * * side intermediary.

Question 1 USD sf, the base currency is USD, and the inquirer **USD, that is, ** sells USD, the selling price.

GBP USD, the base currency is GBP, and the inquirer is USD, which is GBP, the price.

AUD USD, the base currency is Australian Dollar, the inquirer is USD, the Australian Dollar, and ......so on

Second, the inquirer sells the ** currency, that is, the base currency, the ** base currency, the unified ** price.

Third, the inquirer's currency, that is, the base currency of the inquirer, is the unified price.

The first:;; It involves the difference between the direct pricing method and the indirect pricing method.

The second and third questions involve the currency and the currency, this is simple, the currency pair is the currency in front of the currency, and the currency behind is the currency.

The first one is the ask price, and the second one is the bid price.

gbp/usd

Take this as an example, which means that 1 pound sterling can be sold to get US dollars.

The next 20 means that to **1 pound you need US dollars.

To put it simply, AUD means AUD to US dollars, which means that 1 Australian dollar is equal to US dollars. And the ** in foreign exchange means that your ** exchange rate will increase, that is to say, the Australian dollar appreciates, the dollar depreciates, and selling is the opposite, I don't know if you are closing the position or what, because foreign exchange is a two-way transaction. 1 AUD can be exchanged for more US dollars.

** There will be interest for you to eat, and interest will be charged for selling. Remember that there is also a processing fee.

The answer to the first question is, and so is the answer to the second question, and the third question is equivalent to ** dollars.

The bank will earn a little bit at the same time that you will buy at a higher price than you sell.

The data changes again when you ask, and it's not useful at all.

I don't know what you mean!!

It's very simple, look at the time.

Once you learn it, you can watch it, and let's learn it first in the Spring and Autumn ** live broadcast room.

The central exchange rate, also known as the middle exchange rate, is the average of the ** exchange rate and the selling rate. The calculation formula is: middle price = (** price selling price) 2 If you buy and sell in cash, you want to buy foreign exchange in RMB, then the bank is selling foreign exchange, and the reference ** is the selling price, for example, the selling price of the euro is, which means that you need to use RMB to exchange for 100 euros, then 100 is the value of pounds that can be exchanged for 1 yuan; The selling price of the yen is that the renminbi can be exchanged for 100 yen, so 100 is the value of the yen that 1 yuan can be exchanged.

To understand the ** of a forex trading may seem confusing, however, if you remember two things later, you will find it very simple. 1) First, the first currency listed is the base currency. 2) Second, the value of the base currency is always measured in units of 1.

The U.S. dollar is the central point in the forex trading market and is often considered to be the base currency of the world. in major currencies. This includes the US Dollar, Japanese Yen, US Dollar, Swiss Franc and US Dollar Canadian Dollar.

For these currencies and others, the second currency in a currency pair is expressed as how many units of USD are exchanged for each. For example: USD JPY** means that 1 USD is equal to JPY.

When the U.S. dollar is a base unit, and a currency pair** rises, it means that the U.S. dollar rises and the other depreciates. If the above-mentioned USDJPY** rises to, then the US dollar strengthens because he is now able to buy more yen than before. The 3 currencies that are exceptions to the comparison rule are the British pound, the Australian dollar and the euro.

In this case, you might see ** such as GBP US Dollar , which means that 1 GBP is equal to US Dollars. In these 3 currency pairs, the US dollar is not a base**, and an ascending ** means a falling dollar. It's about spending more dollars to get a pound or a dollar.

In other words, if a currency** rises, the base currency will appreciate, and a lower ** means that the base currency is depreciating. Currency pairs that do not include the US dollar are called cross-currency pairs, but the same is true for them. For example, the euro and the Japanese yen** are.

This means that 1 euro is equal to the Japanese yen. In forex trading, you will see a two-sided ** consisting of the bid price and the ask price, where you intend to sell the base currency (and buy the opposite currency at the same time). The ask price is this, where you can buy the base currency and sell the opposite currency.

Exchange rate ** expression method - the exchange rate of the currency **, is more complex than the ** of ordinary commodities, and now, there are two main pricing methods in the world:

Direct pricing method: A method of expressing a number of national currencies in one unit of foreign currency. That is, it is to treat foreign currency as a commodity, and domestic currency as a measure of value. For example, one dollar is equal to the yuan, which is the direct pricing method for China.

Indirect pricing method: It is based on a certain unit of domestic currency as the standard to calculate how many units of foreign currency should be charged. In other words, the national currency is treated as a commodity, and the amount of foreign currency is used to express the ** of the national currency, which acts as a scale of value.

For example, 1 pound is equal to the US dollar, and for the UK, it is an indirect pricing method. At present, there are not many countries in the world that use the indirect pricing method, mainly the United States, the United Kingdom, Australia, etc.

Adopt oh thank you.

Generally speaking, in the international foreign exchange market, Japan and Switzerland use the actual exchange rate that directly marks the forward foreign exchange (for example, the Bank of Japan marks the forward exchange rate of the three-month US dollar against the yen as USDI=, and banks in other countries generally use premiums, discounts and parities to mark the difference between the forward exchange rate and the spot exchange rate). That is, when the bank quotes forward foreign exchange transactions**, it only quotes the "points" of premium and discount. The main reason for the use of premiums and discounts to quote forward foreign exchange transactions** is that the forward exchange rate is based on the spot exchange rate.

Under normal circumstances, if the spot rate of one currency against another currency changes, the forward rate will also change, but the difference between the spot rate and the forward rate is relatively stable. As a result, it is more convenient for banks to use the difference between the spot exchange rate and the forward exchange rate in forward transactions, and it is easier for customers to accept. (Source-Communication-Remittance-International)

The above content is for your reference, and the actual business regulations shall prevail.

Currency pairs: one week in January and one month in March.

USD CNY: USD CNY refers to the US dollar and RMB, as you mentioned later, the corresponding numbers below the week January and March are not single ** prices, but they are like the buying and selling price, because of these three sets of numbers, there is a price difference between the same group of numbers, like the buying and selling price. But I don't know what time period you chose.

USD: The current ** level of the Chinese yuan should be around and people are in the process of rising. You have selected a week**, a swap for January, and a swap for March**.

The USD CNY below the currency pair refers to the US dollar and RMB, and the corresponding number below the following week January and March is not a single ** price is the buying and selling price, but I don't know what time period ** was chosen. USD: The current ** level of the Chinese yuan should be around and is still on the rise.

Specifically, the bank negotiates and signs a swap agreement with the customer to stipulate the spot foreign exchange exchange rate and the value date, and the forward foreign exchange exchange rate and value date, respectively. The customer converts RMB and foreign exchange with the bank at the agreed spot exchange rate and delivery date, and converts in the opposite direction with the bank at the agreed forward exchange rate and delivery date. Foreign exchange swap is a commonly used means to avoid exchange rate risk in the international foreign exchange market.