The world of forex trading revolves around currency pairs and their quotes. Here’s a breakdown to help you navigate them on the Exness platform:
Currency Pairs:
- Base Currency vs. Quote Currency: A currency pair is always quoted with two currencies. The first currency listed (e.g., EUR in EUR/USD) is the base currency, and the second (USD) is the quote currency.
- Trading the Pair: When you trade a currency pair, you’re essentially buying the base currency and selling the quote currency.
- Examples on Exness: Exness offers a variety of currency pairs to trade. Some popular examples include:
- EUR/USD (Euro vs. US Dollar)
- GBP/USD (British Pound vs. US Dollar)
- USD/JPY (US Dollar vs. Japanese Yen)
- AUD/USD (Australian Dollar vs. US Dollar)
Understanding Quotes:
- The Quote Represents the Price: The quote displayed on the Exness platform represents the price you need to pay in the quote currency (e.g., USD) to buy one unit of the base currency (e.g., EUR).
- Pip Movement: Changes in the price are measured in pips. On Exness, most major pairs have a pip value of 0.0001 (one-tenth of a cent) for the quote currency.
- Example: If the EUR/USD quote is 1.1234, it means it costs $1.1234 to buy one euro. If the price increases to 1.1235 (one pip higher), it indicates the euro has strengthened slightly against the dollar.
Additional Points on Exness:
- Live Market Prices: Exness provides real-time streaming quotes for all tradable currency pairs.
- Bid and Ask Prices: You’ll typically see two prices displayed for each pair – the bid price (the price Exness is willing to buy the base currency) and the ask price (the price Exness is willing to sell the base currency). The spread is the difference between these two prices.
- Order Types: You can place various order types on Exness to buy or sell currency pairs at specific prices (covered later in the Exness tutorial).
Tips for Success:
- Focus on Major Pairs: Beginners often find major currency pairs like EUR/USD or GBP/USD easier to understand and trade due to higher liquidity and tighter spreads.
- Stay Updated on News: Economic data releases and global events can significantly impact currency valuations. Keep yourself informed about news that might affect your chosen pairs.
- Practice with a Demo Account: Exness offers a demo account with virtual funds. Utilize it to get comfortable with currency pairs, quotes, and the trading platform before risking real capital.
By understanding currency pairs and quotes, you’ll be well on your way to navigating the forex market on Exness. Remember, consistent learning and practice are crucial for successful trading.