BASIC FOREX KNOWLEDGE : buy, Sell and Quotes

People often get wrong by assume that the forex market is only for professionals in the financial industry,  fore those in nicce outfit and sat infront of monitor and yell in wallstreet, but the reality is that millions of people to cultivate enterprise trading in the forex market every day. To get started Learning Forex, you need to learn about the foreign exchange market, which is where all happen

In a briefly description foreign exchange (forex) trading is an investment instrument of foreign currency trading with other foreign currencies. Profits derived from the changes in the currency exchange rate.  So basically, in forex trading activity our goal is to achieve a profit. To earn profit every trader may perform Buy action and/or  Sell action.  Buy can also be paired with the Bid or Sell. Long can be paired with Offer or Short. So if you read an article about forex and there mentioned Bid or Long term, not to be confused because the two terms is tantamount to Buy or Buy.

Undersatnding quotes is easy. But if we do not understand can be confusing too. Quotes on forex transactions usually written in conjunction with his pairs and follow the ever-changing market from time to time (running / real time).

Another basic about forex's transaction activity is quotes. Two basic things you must remember about reading quotes:

1. First mentioned currency is the base currency
2. Base currency value is always 1

• Bid  is price that you got when we take sell /short position
• Ask is price that you got when you take buy/long position
• Fixed spread with an extension – certain part of a spread is predetermined and another part may be adjusted by a dealer according to market.
• Variable spread – fluctuates in correlation with market conditions. Generally variable spread is low during times of market inactivity (approximately 1-2 pips), but during volatile market can actually widen to as much as 40-50 pips. This type of spread is closer to real market but brings higher uncertainty to trade and makes creation of effective strategy more difficult.