Search results (8)
Base currency
Forex education
Base currency is the first currency appearing in a currency pair. Its value is determined by the price of the currency quoted against it. For example, if the EUR/USD currency pair rate is 1.3525, then the euro is the base currency and it is...
Quotation
Forex education
The term “to quote” is most likely to have come from the French verb "coter" which means to mark/label with numbers. The quote is the value of one currency unit denominated in terms of another currency.For example, the EUR/USD rate is 1.275...
Chapter 5. Forex quotes
Forex education
When we buy something in a shop, a price tag shows us the price of an item in the domestic currency. For example, we pay $12 for a book which is common practice for us.In the Forex market, we always trade one currency against another. There...
Chapter 6. Buy and sell price of currency pairs and spread
Forex education
Until now, talking about quotes, we have intentionally used only spot (current) Forex exchange rates to make our website easier to understand. However, a Forex quote consists of two rates (prices) - the sell rate (bid) and the buy rate (ask...
Chapter 7. Cross currency pairs
Forex education
The trading operations on Forex are carried out not only against the US dollar. We intentionally have not touched on these operations until now to make the content more intelligible. The currency rates, which do not include the US dollar, a...
Chapter 9. Forex market and exchange offices
Forex education
Forex trading is aimed at making money on currency speculations. We have been describing the currency market above but avoided such topics as what starting capital is needed to work on Forex and what profit can be expected. In this chapter...
Chapter 14. Calculation of profit and loss
Forex education
We have thoroughly considered the basic terms used on Forex and the main principles of margin trading. It is the time to study how to calculate profit and loss of the opened trades. We know that a trader enters the international currency ma...
Forex calculator
Financial questions
Notification:The value of a pip is calculated on the basis of the current rate of a given currency pair.Please note that 1 lot of InstaTrade is equal to 10,000 units of the base currency.You can find below a formula to calculate the value o...