Nevertheless, it is difficult to comprehend the forex quotes. As for a foreign exchange quote, it is not so difficult to do. Before making your first investment in the currency trading you have to understand the forex quotes. Remember two important things about the forex quotes:
 The first currency listed first is the base currency
The value of the base currency is always 1
Two-sided quotes come across when trading forex. It consists of a Bid and an Ask.
Price at which one can sell the base currency is called bid.
Price at which one can buy the base currency and at the same time selling the counter currency is called ask.
Foreign Exchange Trading Quotes Tips
US dollar is the 'base' currency for quotes. It includes USD/JPY, USD/CHF and USD/CAD in the majors.
There is also a "cross". This is a combination of two currencies involved in trade. USD/JPY means that the forex quote is valid for someone who wants to use United States Dollars to buy Japanese Yen.
As for quotes, they are usually expressed as a unit of $1 USD per the second currency quoted in pair. If we take a quote of USD/JPY 120.01, it means that one U.S. dollar is equal to 120.01 Japanese yen.
A currency quote can go up. In this case it means that dollar has appreciated in value and the other currency has gone down.
The dollar is stronger if the USD/JPY quote increases to 123.01. The reason is that fact that it will now buy more Yen than before. But there are three exceptions to the rule: British pound (GBP), the Australian dollar (AUD) and the Euro (EUR). If a quote is GBP/USD 1.436 it means that one British pound equals 1.4366 U.S. dollars. The U.S. dollar is not the base rate in these three currency pairs. In this case a rising quote means a weakening dollar. This is because it now takes more U.S. dollars to equal one pound, euro or Australian dollar.
If a currency quote goes higher it increases the value of the base currency. Then a lower quote means the base currency is moving down.
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