What is a currency rate quote?
The quotation of the exchange rate is...
Currency rate quote (currency quote, Financial quote) - is the numerically expressed value of one freely convertible currency in relation to another at a given time. The word "quotation" is of French origin: the verb "coter" means "to number, to mark".
Why is a quote needed on ?
At Quotation determines the price of currencies (as well as securities and commodity prices) on the market, at which the seller is ready to sell a certain amount of an asset at a given time. Usually a quotation is a volatile, changing value.
If we're talking about currency quote, it expresses the value of one currency through the units of another. For example, the euro rate is $1.3408: "1.3408" is the quotation currency pair euro/dollar.
Quotes are formed based on a variety of economic and political factors: interest rates, inflation, political stability, etc.
Under exchange rates sometimes understood as the average value of one currency against another, which is set by central banks to trade with the public.
What types of quotes are there?
The classification of quotations depends on the asset to which it is applied. The following types of quotes are distinguished in the financial sphere:
- Currency quotes - The value of one currency expressed in units of another currency. Example: currency pairs at .
- Quotes for precious metals - The value of some volume of precious metal, expressed in monetary units. Example: XAU/USD - the value of a troy ounce of gold in dollars.
- Oil quotes - the cost of a barrel of oil in dollars. Example: Brent quotes - the cost of a barrel of Brent oil in dollars.
- Quotes on stocks, bonds, securities, futures - the value of financial instruments expressed in appropriate monetary units.
In the currency market it is customary to distinguish between three types of quotes:
- Direct quotation - The ratio of any currency to the U.S. dollar. For example, EUR/USD, GBP/USD, AUD/USD.
- Reverse Quotation - the ratio of the US dollar to any other currency. For example, USD/CHF, USD/JPY, USD/RUB.
- Cross Course - A quotation showing the value of one currency against another based on their relationship to the U.S. dollar. For example, GBP/JPY, EUR/GBP, EUR/CAD.
How do I know the exchange rate quote?
In order to find out the desired currency quotes, you can use one of the many services that provide quotes for most of the traded currencies in the currency market online.
You can also view the desired currency pair quotes in the MetaTrader 4 terminal. To do this, call the "Market Watch" window, where the quotes of all available currency pairs will be displayed.
Note that each quotation has 2 values: the bid price Bid and the ask price Ask. The difference between them is called spreadThe amount of which depends on the broker.