A basic skill a Forex trader has to acquire is how to read live Forex quotes. It will help the newbie trader read and interpret live Forex quotes.
Live Forex quotes are refers to the format in which currency prices are stated in the Forex market. Live Forex quotes are usually shown as the value of the counter currency to a unit of the base currency. What this means is that if we say that the current market price of the EUR/USD is 1.4134, it means that 1 Euro will exchange for 1.3136 US Dollars. However, live Forex quotes are not stated as a single price. In any live Forex quotes, two sets of prices are given, representing the price at which the broker or dealer will buy a currency from a trader who wants to sell, and the price at which dealer or broker will sell to a forex trader who wants to buy. These are known as the bid and ask prices respectively. On some platforms, you will see them referred to as bid and offer prices. The difference is called the spread and this is the profit of the broker/dealer from the transaction.
The liquidity of a currency pair is easily seen from its live Forex quotes. The smaller the spread of a currency pair, the more liquid that currency pair is. Traders are most likely to get orders fulfilled promptly without the risk of slippage when liquidity is high. Many successful traders also work as introducing brokers to Forex firms to increase their income base. A trader who is offering signals services to guide his introduced clients to trade and generate income can structure a business plan where he uses the Forex quotes to determine how much he can make from his client’s trading activity.
Live Forex quotes can also be used to tell in an instant, if a market is reaching a psychological support or resistance point. Usually when a Forex platform is opened by the trader, it takes some time for the charts to open as the platform tries to gather the data from the market. The Live Forex quotes display almost immediately, so a trader can tell when to trade based on psychological support and resistance levels. Live Forex quotes can also be used by a trader to determine the cost to his trade in terms of the spread, as a way of calculating the risk-reward ratio.
Live Forex quotes are a kind of speculation in which Forex traders make their bets on the price movement of certain currency pairs. As we all know, traders need to place buy or sell orders of certain currency pairs at certain price quotes when doing Forex trading, which help traders determine the right time to open or close their positions in the Forex market.
There are many unique features of live Forex trading. With the help of live Forex quotes, traders can make Forex trading real time based on fundamental or technical indicators through Forex trading platform. In order to be successful in Forex trading, traders need to develop their Forex trading skills through learning Forex knowledge and how to make use of Forex trading tools like live Forex quotes services, in order to be updated all the time and adjust trading positions in Forex market.