Posted by Forex Trader on Friday, August 28, 2009,
Currencies
are quoted in pairs, such as EUR/USD or USD/JPY. The first listed
currency is known as the base currency, while the second currency is
called the counter or quote currency. The base currency is the “basis”
for the Ask or the Bid. For example, if you Ask EUR/USD you have bought
Euros (and simultaneously sold dollars). You would do so in expectation
that the Euro will appreciate (go up) relative to the US dollar. FX is
traded in lots, which represent 100,000 units of the base cur... Continue reading ...