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Understanding How Quotes Work
What does the figures mean?
In the foreign exchange market, trading is usually done based on how much is needed to sell or buy a particular base currency. A trader will typically quote a figure like 1.2733 / 35 for the EURUSD.
Let us now understand what this forex quote means.
The figure on the left is your sell quote or the trader´s bid quote and is the price at which the trader is willing to buy 1 Euro from you. As you can see, this means for every 1 Euro you sell to the trader, you will get US Dollar 1.2733.
The figure on the right is your buy quote or the trader´s ask quote and is the price at which the trader is willing to sell 1 Euro to you. So, for every Euro you want to buy from the trader, you will have to pay him US Dollar 1.2735.