The term Buy and Sell in Forex ~ theater of dreams

Friday, February 25, 2011

The term Buy and Sell in Forex

Buy, Sell, Spread and How to Read Forex Quotes on Forex world can not be separated from the Buy and Sell (Buy and Sell). Every trader has the freedom to do one action on which he was to gain profit. Buy can also be paired with the Bid or the Long and paired with the Offer or Sell Short. So if you're reading an article about the forex and there is mentioned Bid or Long term, need not be confused because the two terms are synonymous with a Buy or Sell.
Reading the quotes is easy. But if we do not understand can be confusing too. Quotes on forex transactions is usually written together with his pairs and always follow the market changes from time to time (running / real time).
How to read it is quite simple if we remember two things: 1. The first currency listed is the base currency (base currency) 2. Base currency value is always 1. For example: USD / CHF 1.4623 means that 1 U.S. dollar was worth 1.4623 Swiss Francs. If the dollar the next time a value of USD / CHF 1.4630 means that the U.S. dollar gained 7 points because they can buy more Swiss Franc.
Each pairs there are two price displayed is the purchase price (bid) and selling price (offer). The difference between them is called the spread. So, if we use the example above, USD / CHF 1.4623/28 means that the selling price is 1.4623 U.S. Dollar and Swiss Franc 1.4628 purchase price. Spread here the value 5 (.. 28 -.. 25 = 5).
Spread is determined by the broker and its value varies from one broker to another. The smaller the spread the better for investors. In which we refer broker has a competitive spreads, such as the MB Trading (spread according to market), Gain Capital (fixed spread), PT. Asia Kapitalindo Commodity Futures (spread fix).
 
If you are a novice in the world market, then you will see many foreign terms that sounded strange to the ear.

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