Forex quotes is term that can be heard frequently in everyday life, and in a Forex traders work even less so. Its not possible to sell and buy something without Forex quotes, because the income of the trader depends on the Forex prices at the given moment. So, when trading on the Forex market you must to constantly keep tracking the currency quotes, thats why every trader has to clearly understand what the numbers mean and for what they are used.
The price of a particular currency at a certain time is the simplest definition of the Forex quote. It shows the value of one currency expressed in the value of another currency. Thanks to this indicator, the traders determine whether its necessary to make a deal or to refrain from entering the market.
All Forex quotes are divided into two types – the base currency and the quote currency. These two types are always used in pairs. And you should remember two simple rules. In the pair the basic currency is always written first. And the basic currency is always equal to unity. It is also useful to know that there are direct and indirect Forex quotes. In the direct quotes the value of foreign currency is expressed in national currency, in the indirect ones everything is just the opposite. In most cases the traders prefer to work with the direct quotes, as they are easier to read. All graphics in the Forex market reflect fluctuations in the quotes the costs of the currencies. And these Forex rates are changing constantly. The traders make money on these changes, and their earnings or losses are expressed in the quote currency.
To trade successfully its very few to know only the meaning of the Forex quote. To identify the market trend a market participant should have information about the dynamics of quotes for a certain period of time. To achieve this goal the charts that reflect trading operations are constructed. These charts are analyzed by the traders to identify consistent trends and regularities. Therefore, one can say exactly what the Forex quotes not only express the value of one currency in another one, but also help the traders to make decisions regarding the advisability of concluding a transaction on the Forex account. This is the main indicator of trading, on which all market participants are focused, so its value can not be overstated.