Forex Advice: Currency Quotations

Forex Advice: Currency Quotations

Alright people, I know that it has been a while since our last post, but we are back up and kickin. For our forex advice today, we will talk about what an American Currency Quotation is, and how to read it. This is a very simple way of looking at a currency pair, and it should help explain fairly quickly how the dollar is fairing.

We believe that our forex advice should always be helpful to the beginning trader. We believe that talking about the currency quotation is just that. The American Currency Quotation breaks down the relationship between the dollar and how it fares up to another currency. It displays the buying power of the dollar to other currencies. Sounds like an easy concept to pick up? That is because it is.

One example of what the American Currency Quotation will look like is .645. This means that it would take $.645 to buy $1.00 of Canadian currency. This correlation maps out the difference in currencies, and their worth in relation to other commonly used currencies. This is also commonly called the Multiplier.
You can also check out American Currency Quotation

There is another commonly used currency quotation called the European Currency Quotation. Much like the American, this is also used to express the relationship of two currencies. The European Currency Quotation is also called the divider. The European Currency Quotation would be similar, except it shows how much of a certain currency it takes to equal $1.00. Let’s say that it takes $1.5 Euros to equal $1.00. The European Currency Quotation would like 1.5.

Our forex advice is not always about the actual trading as there are a lot of definitions and variable that traders need to know before they can become a profitable trader.

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