Now we will learn about kinds of forex terms
Base Price/Counter Price
You know that currencies are trades in pair, let's see the pairs :
Base Price/Counter Price
You know that currencies are trades in pair, let's see the pairs :
Let say GBP/JPY pair, it means that GBP becomes base currency. When GBP getting stronger, the opposite JPY "the counter currency" is getting weaker. For Example, if GBP/JPY turns from 210.10 t0 211.30, GBP is getting stronger because we requiring many JPY to exchange with GBP.
Bid/Ask, Spread and Pip
In forex transaction, price buy and price sell of currency expressed in bid/ask or bid/offer. For example :
If you want to buy EUR/USD, you have to see the "Ask" Column. If at that time you want to buy EUR/USD, it gonna cost you 1.4803. After that your gain is -3 pip. That is spread. Then if you wanna close your transaction, you have to see the "Bid" Column.
Now your EUR/USD turns to 1.4820 and you wanna close your transaction. At that time you gain profit 17 pip.
