What is the currency of the quote?
on the foreign exchange market or on the forex market, currencies were usually traded in pairs. The first currency is referred to as the basic currency and the second in the pair is known as the currency quote. The currency of the offer can also be known as a secondary currency or counter -currency. For example, in a currency pair, such as Euro (EUR) versus the US dollar (USD), the couple will usually be quoted as EUR/USD. In this pair, the EUR is the basic currency and the USD is a change of offer. For example, if EUR/USD is traded to $ 1,4164, this means that the exchange rate for EUR 1 equals $ 1.4164. This means that to purchase 1 EUR will have to replace the individual for $ 1.4164, and for this rate one could get approximately EUR 0.7060 with $ 1. When observing Forex price fluctuations using graphs or simple quotes without graphs, one wiviz, that the price of the monetary pair is depreciated when the currency quotes stronger compared to the basic currency. On the contrary, when the currency of the quotation decreases the value in relation to the basic currency, the price of the pair will increase.
Most currencies in the world are traded on stock exchanges and currencies are cited using standardized institutions called International Organization for Standardization (ISO). For example, ISO has set the code for the US dollar as USD, the Euro code as EUR and the Japanese code only as JPY and all other currencies have their own codes.
The order in which the currencies are cited on the stock exchange is quite standardized. For example, the EUR versus a few USD will always be quoted as EUR/USD on the Forex market, but in some cases the order may be reversed for various reasons. Instead of being quoted by AS EUR/USD, for example, this couple can be quoted as USD/EUR. The high percentage of monetary trades includes an US dollar and a couple who does not include the US dollar is called a pair of cross currencies.
In what is called a direct quote is the currency of the domestic currency offer listed as a unit of foreign currency. For example, in one of the European Union countries (EU)would be a direct quote for the USD as EUR 0.7060 EUR = $ 1 USD. On the other hand, in the US, a direct quote for EUR would be $ 1 = EUR 0.7060. In an indirect quote, the order would be reversed, ie in the US, the offer would be EUR 0.7060 = 1 USD USD and in the EU would be quoted as $ 1 = 0.7060 EUR