Learn how to read the exchange rate (Currency exchange )

Currency always appear in the form of (pairs), for example pair EUR / USD EUR any dollars, for example, or pair USD / CHF pair any francs, and the reason for its appearance in this way, that every deal will it, will buy a currency and sell the other.

Now Come with me to learn, how to read the exchange rate ?
Exchange rate simply is the ratio of currency in value against other currency.

If Screen of currency pair exchange rate we have seen
EUR / USD exchange rate was 1.2853 a

If the exchange rate of EUR / USD means as follows ..

Since the euro is the currency in the pair (the main currency always show your hand on the north)

It can only buy 1 euro, compared to what we see of the U.S. dollar in the price we have visual on the screen of trading, ie, we can sell the U.S. dollar at 1.2853 to buy 1 euro.
In other words, the value of 1 euro = 1.2853 U.S. dollars.
In other words, it can be bought only 1 euro to sell $ 1 and 28 cents, at 53 Point.

Here's a question ...
Why did not you read the price 1.2850 and 1.2853 to read? What are these the 3 points?
To answer this question, first you must know these terms are important:
(1) the base currency.
(2) anti-currency (the currency of reading).
(3) spread.
(4) Point.



Base Currency

Is the first currency in the currency pair, and be on your hand in the north to screen the currency pair exchange rate.

In this example the exchange rate in the pair EUR / USD equals 1.4503 This means that the euro is considered the base currency
This means that every 1 euro you can buy it at U.S. $ 1.4503

Currency counter
Is the second currency on your hand right in the currency pair.
Known as the currency of "reading", which we use to read the price, as I have just mentioned, and also we call the currency Alboynt it is that we work out how many points driven by the husband.

We say that the currency "anti" is equal as well as against the base currency
For example, a pair EUR / USD exchange rate of 1.4503 in the currency here is the anti-dollar is the currency of any Alboynt that each of $ 1.4503 equals 1 euro only.

Spreads
The difference between the purchase price and sale price Balsebred known or unknown on points, a taxi broker.

For example, in the exchange rate of EUR / USD 1.4503/1.4500, but he will read orally without the first three digits of the three as follows
"03 / 00" if the difference was only here 3 Points.

 Spread is the type of relationship with the payment transaction to buy or sell ..
When you buy currency you will pay the difference spread between the two currencies because you pay the difference until you open the package and enter the market, do not pay anything when you get out, but when you sell the currency you will not pay the spread between the two currencies when you open the deal, but will pay the spread when you want to close the deal and get out of the market.
 
Point- pip
Is the smallest unit of price for any currency, and we counted our losses and our profits .. And almost all currency pairs, including five numbers, and more couples have a decimal point after the first number

For example, a pair EUR / USD at the exchange rate of 1.4503
In this case one point equals to the smallest change in the fourth decimal place of a 0.0003

If the currency counter in any pair where the USD
The value is always equal to one point  1 ÷ 100 cents.
With the exception of one pair of prominent  USD / JPY which point equals to $ 0.01


Have I succeeded in that you get information on how to read simply the exchange rate? I hope so 
If your answer is yes .., I am very happy, because you had thus held the first string on your way to Forex, because most new traders even despite the passage of time on their experience of accounts demo and incomes in some trade, may not know how to read the exchange rate for the currency pair more than one way but may not know already

Base currency is circled on the left

The opposite one (not base ) circled on the right (USD)