Foreign Exchange Quotes

Understanding how to read foreign exchange quotes is critical if you want to be successful in Forex trading. Before making a trade, you should read the quotes and find out exactly what the value of the currency pair is. Here are a few things to consider about these quotes and how they work.

You can find the latest currency quotes below.

Foreign Exchange Quotes

When you work with a Forex broker, you will have access to the live Forex rates that they offer. You can also access the rates from eToro right here on this page. These rates are up to the second and they give you a good idea of what everything is going for in the market. Even though there will be some variations from one broker to the next, these should be pre-close to what you will see everywhere else.

Bid and Ask

When you read these types of quotes, you will immediately notice that you see two different prices. This is not a "sale price" and an "everyday price" for your favorite currency pair. The first price that you see is the bid price. The second price that you see is the ask price. The bid price is the price at which the market is ready to buy right now. The ask price is the price at which the market is ready to sell immediately.

When you place a buy order on a currency pair, you will have to pay the ask price. The broker will then keep the difference between the bid and ask price. This is referred to as the "spread." This is how Forex brokers are compensated.

If you place a sell order, you will have to pay the bid price. The broker will then keep the difference between the bid and ask price again.


With many long term trading strategies, the spreads will not make much of a difference for you in your trading. However, if you are using a short-term scalping strategy, the spreads will be vitally important. You have to find broken as very small spreads on a consistent basis. You can subtract the bid price from the ask price to find out what the spread is.

For example, imagine that you see a quote for the EUR/USD pair that looks like this -- EUR/USD 1.3387 1.3390.

To calculate the spread, you would take the 1.3390 and subtract 1.3387 from it. This would give you a spread of 3 pips.

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