Basic Forex Terminology Using HFM Trading Platform
Here’s a breakdown of the basic Forex terminology you’ll encounter when using the HFM (formerly known as HotForex) trading platform. Create an Account Now 1. Currency Pair In Forex, currencies are traded in pairs. The first is the base currency, and the second is the quote currency. For example, in EUR/USD: EUR (Euro) is the base currency. USD (U.S. Dollar) is the quoted currency. The value of a currency pair shows how much of the quote currency you need to buy one unit of the base currency. 2. Bid and Ask Price Bid Price: The price at which HFM (or any broker) is willing to buy the base currency in exchange for the quote currency. This is the price you’ll get if you sell the pair. Ask Price: The price at which HFM is willing to sell the base currency in exchange for the quote currency. This is the price you pay to buy the currency pair. For example, in a EUR/USD price quote of 1.1200/1.1205: 1.1200 is the bid price (sell EUR, buy USD). 1.1205 is the ask price (buy EUR, sell USD)...