Not yet registered? Create a OverBlog!

Create my blog

What to consider when looking at foreign exchange quotes

Investors who are looking at getting involved in the Forex market will need to understand that there is a steep learning curve involved. Many people who are new to Forex will find that there are parts of the system which they do not understand. Investors must learn how to read a Forex quote before they invest their money.

What to think about when reading a Forex quote

The Forex market
Before an investor can analyse a Forex quote, they must first learn how to read one. The Forex market is a place where investors trade one currency for another in order to make a profit. Trading on the Internet The majority of people exchange Forex on the Internet. This currency is traded in pairs. An example of this would be USD/AUD = 0.78. The base and the counter currency In this example, $1 USD is being traded for $0.83 cents in Australian currency. The US currency is the base currency and the Australian money is called the counter currency. The bid and the ask price Every Forex quote will have a bid and an ask price. The bid price is the price at which the dealer is willing to buy the base currency while the ask price is how much the dealer is willing to sell the base currency for. When to buy or sell a currency? All Forex Exchange quotes will include a currency pair and the bid/ask price. This information will let buyers and sellers know whether buying or selling a currency will be profitable at the time of the quote. As the Forex exchange market moves very quickly, most traders will get more than one quote a day.

Where to find more information

Investment professionals Traders who are unsure on how to get started in the Forex market should consult an investment professionals. Most banks hire people to give out investment advice to potential investors. The best way to get investment advice is to consult a specialist at a bank. This is a good way to have Forex questions answered without having to pay a fee for advice.
Important advice
Those who are new to Forex should make sure that they take the time to practice on a demo market software before they start investing real money. This will help beginners understand the system and jargon which is used. Traders who are familiar with the system have a better chance of making a profit than those who are not.

Same category articles Accounting

What is the definition of financial management

What is the definition of financial management

Financial management has been a hot topic over the last three years as the global financial crisis debilitated the world's economy. This article describes some of the basic functions that define this important role in organisations that may or may not be profit-seeking enterprises.
How to use a military retirement calculator

How to use a military retirement calculator

A military retirement calculator is used by military employees in order to calculate their retirement packages based on their active period of service in the army. The military calculator also helps to determine the right plan applicable to military personnel.
A guide to financial tools

A guide to financial tools

Financial Tools is a lending software solutions company for credit unions and banking. Offering a one-stop shop for lenders, its methods of streamlining and data tools include assessment needs for credit risk, portfolio risk management, CRE analysis, stress testing and more. Their CASH programmes provide comprehensive training and support for risk management as well as to business development/sales management.
What duties are detailed in an accountant's job description?

What duties are detailed in an accountant's job description?

Accountants have one of the widest job descriptions in the professional world due to the level of detail and vigilance required in financial record keeping. This article gives a brief description of their roles and the type of organisations in which they practise their professions.