ja_mageia

How to Read an FX Quote

Currencies are always quoted in pairs, such as GBP/USD or USD/JPY. The reason they are quoted in pairs is because in every foreign exchange transaction you are simultaneously buying one currency and selling another. Here is an example of a foreign exchange rate for the British pound versus the U.S. dollar:

GBP/USD = 1.7500

The first listed currency to the left of the slash ("/") is known as the base currency (in this example, the British pound), while the second one on the right is called the counter or quote currency (in this example, the U.S. dollar).

When buying, the exchange rate tells you how much you have to pay in units of the quote currency to buy one unit of the base currency. In the example above, you have to pay 1.7500 U.S. dollar to buy 1 British pound.

Learn to Trade Keeping it simple

Written by Administrator
Monday, 10 March 2008 18:39
The main cause of failure for any trader is taking a simple process and by sheer force of will power making it complicated. Trading is a VERY simple business. The path to success is to STOP trying to rule base your trading on singular components. Example: When looking at PAT charts a high volume flag means nothing. A wide bar means nothing. A historic Belief level means nothing, and so the INDIVIDUAL list goes on. What DOES mean something is to keep your analysis WIDE, that is take a global view, then play a “What if” game. Take all the components you can and then make a decision with a 51% edge. NEVER tell yourself that this WILL go up or down. Telling yourself this will cause commitment to ONE side. It will build a BELIEF in you that your belief WILL work out, it will build a belief that YOU are right! Yes you need rules, but rules that set you free, not rules to constrain your trading and place you into a 100% fixed rule based system which is destined to fail. The video below looks at how simple trading, should be, is and can be when your are using PAT correctly.
Last Updated ( Tuesday, 11 March 2008 20:52 )