Currency pair or also called Pair is always quoted in 2 pairs of currency symbols, such as GBP / USD , USD / JPY , EUR / USD and many more. In the forex trading scheme, you can directly buy one currency and sell another currency at the same time. Here are examples of GBP / USD currency pairs or Pound Sterling with US Dollars.
change the picture
The first currency listed to the left of the slash (“/”) is known as the base currency (in this example, the British pound), while the second on the right is called the counter or quote currency (in this example, US dollar).
When buying or buying, the exchange rate states how much you have to pay in counter currency units to buy one unit / one point of the base currency. In the example above you have to pay $ 1.2 US dollars to buy 1 Pounds.
When selling, the exchange rate states how many units of counter currency you earn to sell one unit / one point of the base currency. In the example above, you will get $ 1.2 US dollars when selling 1 Pounds.
The base currency is the “base currency” to buy and sell one pair (currency pair). If you buy EUR / USD, it means you buy the Euro currency and at the same time sell the USD currency at the same time. Simply like this;
Buy EUR / USD = buy EUR & sell USD
Sell EUR / USD = sell EUR & buy USD
The term from BUY / SELL
First, you must determine what currency pair you want to buy / sell
BUY = If you want to buy / BUY (in this sense, you will buy a base currency pair and sell a counter currency). You hope the base currency will increase in value against the counter currency. Or the counter currency drops in value against the base currency. REMEMBER: Buy = BUY = LONG
SELL = If you want to sell / SELL (in this sense, you will buy a counter currency and sell the base currency), you expect the base currency to decrease in value against the counter currency. Or the base currency decreases in value against the counter currency. REMEMBER: Selling = SELL = SHORT
The term BID / ASK
The quote referred to as BID / ASK with two prices, bid lower than demand. Supply and Demand.
The bid is the price at which the broker is willing to buy the base currency at that time. This means that the current offer is the price that happened / best in the available market where you as a trader will sell.
Ask is the price at which the broker is willing to sell the base currency. This means that the current request is the price that occurred / best in the available market where you as a trader (trader) will buy.
The difference from the bid / ask price is better known as the spread .
For example, on the EUR / USD pair , the BID price is 1.28225 and the ask is 1.28228
If you want to sell EUR, click “Sell” and you will sell the Euro at the price of 1.28225
If you want to buy EUR, click “Buy” and you will buy EUR at the price of 1.28228