Foreign exchange prices and points
- 8월 16, 2017
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Foreign exchange prices and points
Foreign exchange price
Forex quote always includes sales price and purchase price.
The difference between the two prices is spread. This is because the broker includes the commission in the price.
Bids are the prices at which you can sell one unit of the base currency. Suggested price is the price you pay to purchase a unit of the base currency.
For example, in EUR / USD,
The bid amount is the amount received in dollars for each euro sales. This is the maximum amount the broker can pay in euros for selling US dollars. Suggested price is the amount you will pay to buy each euro.
Point and pip
The movement of the currency is measured in points or pips. The point, also called pip, is usually the fourth digit to the right of the decimal point. Therefore, the move from 1.23456 to 1.23466 for EUR / USD is 1 point or pip.
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