What Is A Currency Quote?

Currencies are always quoted in pairs. Reading a forex quote is one of the basic things you should do as a trader.

Let’s take for example the USD/EUR is the U.S. dollar/euro. Using this quotation, the value of a currency is determined by its comparison to another currency.

Let’s suppose the quote of EUR/USD=1.32105

What does it mean? It simply means that 1 Euro=1.32105 US Dollar. You will notice that in Forex we have more than the usual 2 decimal places after the comma. In other words, we go beyond the cents.