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Forex currenciesWhen you find yourself in a market that has a daily volume of over $1.8 Trillion, it becomes very vital that you get the necessary tutorials needed to give you the desired cutting edge for success in such a highly liquid terrain.
I do feel that some basic things must be taught on foreign exchange tutorials like:

Foreign exchange rates

This is the parity between two currencies or the amount of one currency needed to sell (or buy) in order to buy (or sell) one unit (base currency) of the other currency. We can express currency rates as direct quotes or counter quotes. The direct quote expresses a country’s local currency against the USD as well as against other foreign currencies or we could still simply put it as a currency pair in which the domestic currency is the base currency. E.g. for Japan the quote 102.32- 102.35 USD/JPY means that the dollar is bought for 102.32 Yen and sold for 102.35 Yen per unit. While the indirect quote is simply a currency pair where the domestic currency is the quoted currency. This type of quote is seen when trading the British Pound against the United States Dollars and can be expressed like this: 2.0000 – 2.0004 GBP/USD based on this quote you’ll get paid 2.0004 U.S. dollars if you want to purchase 1 British Pound and if you wish to sell 1 GBP you’ll get 2.0000 USD.

Bid and offer

FOREX rates are quoted as two-way rates. Thus a EUR/USD quoted as 1.5712/1.5715 would mean buy marks (selling dollars) at 1.5715 and sell marks (buying dollars at 1.5712). In simple terms it buys cheaper and sells dearer a given currency in exchange for the other one. The difference between the buy and sell marks is called “spread”, and varies across currency pairs according to market volatility.

Basic points or pips

Basis points are integer parts usually 4 decimal points (or 2 decimal points). They are expressed either at 10th thousandth or hundredth, like 0.0001 or 0.01 and are called basis point or pip. We could express 10 basis point change of 1.3000 is 1.3010.

A good foreign exchange tutorial should not only cover these facets but should delve in topics that discuss other topics like spot and forward rates, interest rates, swap rates, forward rates, swaps, money management, candle stick studies, and fundamental data studies.

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