How To Read Currency Quotes?

It is surprising to know that many people don’t know how to read the Foreign Exchange rate. The Currency quotes you see next to each Forex Pairs (e.g USD/TWD 32.480) is basically the money you get base on $1 of your currency. Since the Forex market is mainly base on USD or the US Dollars. Therefore in this case, for every $1 you invest in TWD, you will be getting $32.48 in return.

The changes you see on the currency quotes means that either your base currency or the foreign dollar value has appreciated or depreciated. For example, if you see USD/TWD 33.480 compared to the rates before. For every one dollar you now invest in USD will bring you $33.48 return in Taiwan Dollars. In other words, the USD has increased in value or the TWD has dropped in their currency exchange price.

You will also see other FX Pairs that may look like GPB/USD, EUR/USD and what this means is the money you will get back for every One Dollar you invest with british Pound or EURO. The left side is always the base and the right hand side will be used to define the country dollar value base on the exchange rate.

As a day trader in FX, you’re trying to gain the maximum profits by buying currencies that are undervalued against another. You wait for the changes to happen and sell it when the invested currency rises, in which case you will be making money on the differences in exchanged values.