In forex trading, currencies are always traded in pairs. That's because you are exchanging one's currency to another.
Example:
Exchanging EUR/USD
So every time you place a Forex trade, you're buying one currency while simultaneously selling another currency.
Always remember the following:
1. The first currency listed is called the base currency. EUR/USD
2. The second currency is called the counter currency. EUR/USD
3. The value of the base currency is always 1. in this example 1 EUR the base currency is equal to 1.4621 USD. If the euro is the base currency and the quote goes up, then that means that the Euro has strengthened and the value of the US dollars goes weak because 1 euro can buy you more US dollars than before. (1 EURO/ 1.4622)
The bid currency is the one that you are selling and the ask price is the one that you are buying
Example:
Exchanging EUR/USD
So every time you place a Forex trade, you're buying one currency while simultaneously selling another currency.
Always remember the following:
1. The first currency listed is called the base currency. EUR/USD
2. The second currency is called the counter currency. EUR/USD
3. The value of the base currency is always 1. in this example 1 EUR the base currency is equal to 1.4621 USD. If the euro is the base currency and the quote goes up, then that means that the Euro has strengthened and the value of the US dollars goes weak because 1 euro can buy you more US dollars than before. (1 EURO/ 1.4622)
The bid currency is the one that you are selling and the ask price is the one that you are buying
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