forex-option-trading.com

By ForexBuddy
urrency trades are always done in pairs between the currencies of two different countries. Below are listed two sample currency pairs.
Name Bid Ask Change %Change High Low Time
EUR/USD 1.1901 1.1903 -0.0091 -0.76% 1.2024 1.1891 15:26GBP/USD 1.7439 1.7442 -0.0004 -0.02% 1.7573 1.7410 07:01 Taking the one listed in the first line, let’s look at how a sample Forex investment might evolve over time.
As shown in the price listing, the ask price for the EUR/USD currency pair is 1.1903. Remember the ask price is that at which brokers are willing to sell the base currency (EUR). In this example that means we can buy the base currency (EUR) for $1.1903.
The bid price is listed as 1.1901. Remember the bid price is the price at which brokers are willing to buy the base currency (EUR). In this example that means we can sell the base currency (EUR) for $1.1901.
Unless you have something that brokers are now beginning to offer called a ‘mini’ account, all trades are done in standard lots of 100,000 units. So, to get in the game, you (theoretically) have to shell out $119,030 to purchase one standard lot of 100,000 euros.