Currency pairs, exchange rates and quote on forex

All currency speculations are mainly carried out in the forex market.
As Forex is a global market, it does not have a particular trading place. It is represented by a vast number of trading participants connected by communication channels. Trading deals are made via telephones and computers all over the world. The market never stops working as there are always people or institutions ready to sell or buy a currency.
As Forex is an interbank market, it takes the first place among other segments of the currency market by the trading volume. Currency market investors are attracted by exchanging one currency for another in stated volumes as it brings big profits.
Almost every convertible national currency can be traded on Forex, but the most traded currencies are the US dollar (USD), euro (EUR), Japanese yen (JPY), British pound sterling (GBP) and Swiss franc (CHF).
These currencies form major pairs on Forex: EUR/USD, GBP/USD, USD/CHF, and USD/JPY.
The exchange rate of one currency to another one is set as a result of the interaction between demand and supply. This is usually called a quote.
The forex exchange market, Forex, is the interbank market where quotes are mainly delivered by the so-called market makers, which are the world’s largest banks.
Data on quotes is provided through special networks of the global media majors, including Reuters, Bloomberg, Tenfor, DBC etc. to clients all over the world, namely to all banks, individuals, companies, etc., all those who work with these systems.
InstaForex made contracts with Dow Jones (Forex and stock markets new), Reuters, and e-Signal for the supply of breaking financial news.
1. A scheme to balance deals on initially opened long positions.
Let us note that InstaForex use a 10,000 lot enabling its clients to trade with the minimum deposit amount worth $1.
bid ask
Currencypair: EUR/USD 1.2725 1.2728
Opening a long position implies purchasing the EUR (10,000 euros in volume) for 1.2728 US dollars per 1 euro.
Balance of long position:
-10000 eur -12728 usd
Closing the long position means selling the EUR (10,000 euros in volume) for 1.2750 US dollars.
Changes in balance:
-10000 eur +12750 usd
Total balance:
+10000 eur -12728 usd
-10000 eur +12750 usd
0 +22 usd
2. A scheme to balance deals on initially opened short positions.
bid ask
Currencypair: EUR/USD 1.2725 1.2728
Opening a short position implies selling the EUR (10,000 euros in volume) for 1.2725 US dollars per 1 euro.
Balance of short position:
-10000 eur +12725 usd
The short position can be closed by repurchasing the EUR (10,000 euros in volume) for 1.2728 US dollars per 1 euro.
Changes in balance:
+10000 eur -12728 usd
Total balance:
-10000 eur +12725 usd
+10000 eur -12728 usd
0 -3 usd

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Forex Currency Pairs

Foreign exchange market (Forex) hamesha pairs mein trade hota hai. Hamare Forex Basics series ka hissa, is article mein aap seekh sakte hain ke currency pair kya hota hai. Jab bhi aap kisi currency exchange rate ko dekhte hain, woh kisi currency pair ka hissa hota hai jaise ke EUR/USD. EUR/USD mein do currencies hote hain: Euro aur US Dollar.



Base Currency aur Quote Currency

Currency pair ka pehla currency "base currency" ke naam se jana jata hai, jabke doosra "quote currency" kehlata hai, aur yeh aksar ek forward slash ("/") se alag hota hai.

EUR: EUR/USD, EUR/GBP, EUR/CHF, EUR/JPY, EUR/CAD
GBP: GBP/USD, GBP/CHF, GBP/JPY, GBP/CAD
USD: USD/CAD, USD/JPY, USD/CHF

Base currency ki value hamesha 1 hoti hai, for example, 1 Dollar, 1 Pound, 1 Euro, etc.

Calculation yeh hoti hai: 1 unit Base Currency se X units Quote Currency kharidi ja sakti hain.

Agar base currency USD hai, jaise ke USD/JPY, to USD/JPY 150 ka quote yeh batata hai ke ek U.S. dollar 150 Japanese yen ke barabar hai. Agar base currency EUR hai, jaise ke EUR/USD, to 1.0980 ka quote yeh darust hai ke ek Euro 1.0980 US Dollars ke barabar hai.
Trader currency pair is liye kharidta hai agar usko lagta hai ke base currency ki qeemat quote currency ke mukable mein badhegi, ya phir bechta hai agar usko lagta hai ke base currency ki qeemat giregi.
For example, agar hum EUR/USD dekhein, jahan Euro base currency hai aur is liye buy/sell ka "basis," agar aapko lagta hai ke Eurozone ki sovereign debt crisis Euro ko harayegi, to aap EUR/USD sell karenge. Aapne Euros beche hain ummeed hai ke woh US dollar ke mukable mein kamzor hojayenge.

Note: Forex trading mein yeh shamil hai ke aap ek currency kharidte hain aur doosri currency bechte hain pair ke andar. Is liye jab aap currency pair kharidte hain, to aap base currency kharidte hain aur quote currency bechte hain.

Bid aur Ask Prices

Currency pairs usually "bid" aur "ask" prices ke sath trade hote hain. "Bid" woh price hai jis par aap base currency bech sakte hain/quote currency kharid sakte hain. "Ask" woh price hai jis par aap base currency kharid sakte hain/quote currency bech sakte hain. Aap dekhein ge ke ask price hamesha bid price se zyada hoti hai.

Spread bid aur ask price ka farq hota hai (Spread = Ask-Bid).

Spread: Spread basically bid aur ask price ke farq ko darust karta hai, ya dusre lafzon mein, yeh hai ke brokerages apni commissions kamane ke liye is ka istemal karte hain. Aam taur par major pairs par spread ek pip se lekar teen pips tak hota hai (kabhi kabhi chaar pips tak). Yeh broker par depend karta hai lekin yeh bhi closely liquidity ke sath taalluq rakhta hai, jaisa ke zikar hua.
Success hasil karne ka raaz yeh hai ke aap beginner trader ke tor par ek ya do currency pairs ko chunen jo aap trading karna chahte hain. Jab aap confidence hasil karte hain, to aap apne trading portfolio mein aur pairs shamil kar sakte hain. Lekin naye trader ya investor ke liye hamesha yeh mashwara diya jata hai ke woh sirf kuch pairs ke sath trade karein takay sab kuch asaan rahe.

Major Pair

Aath sab se zyada trade hone wale currencies (USD, EUR, JPY, GBP, CHF, CAD, NZD aur AUD) ko major currencies kaha jata hai, jabke baqi currencies ko minor kaha jata hai kyunki woh kam maqami hissa aur kam liquid hote hain. Major pairs bas ye saat major currencies ke saath pair kiye gaye hote hain. Inme se 70% se zyada Forex trades in pairs mein hoti hain:

EUR/USD: 28%, Eurozone/United States, Euro-dollar (ya same)
USD/JPY: 17%, United States/Japan, Dollar-yen (ya same)
GBP/USD: 14%, United Kingdom/United States, Sterling-dollar (ya Sterling or Cable)
USD/CHF: 9%, United States/Switzerland, Dollar-Swiss (ya Swissy)
USD/CAD: 5%, United States/Canada, Dollar-Canada (ya Loonie)
AUD/USD: 4%, Australia/United States, Australian-dollar (ya Aussie or Oz)
NZD/USD: 4%, New Zealand/United States, New Zealand-dollar (ya Kiwi)

Note: Currency names aur nicknames confusing ho sakte hain jab aap Forex market commentary sun rahe hain ya Forex market research kar rahe hain, is liye yaad rakhein ke likhne wala individual currency ki baat kar raha hai ya currency pair ki.

Hint for Nickname Usage: Agar kisi major bank ke analyst ne report likhi hai jisme yeh kaha gaya hai ke Canadian dollar mustaqbil mein mazboot hoga, to yeh comment individual currency, yaani CAD ki taraf ishara kar raha hai, keh raha hai ke USD/CAD kam hoga (USD kamzor / CAD mazboot). Lekin agar comment yeh sugaahra hai ke Dollar-Canada ya Loonie mustaqbil mein mazboot hoga, to yeh currency pair ki taraf ishara kar raha hai aur iska matlab hai ke USD/CAD zyada hoga (USD mazboot / CAD kamzoor).
Yaad rahe ke mazboot aur siyasi istiqamat se malik currencies woh hain jo kam istiqamat wale ilaqaon mein base hoti hain.

Yeh Saat Major Pairs Kyun Hain?

Iska sab se bara sabab hai volume. Yeh duniya mein sab se zyada active (trade) hone wale currencies hain. Inka pairing maqami hai aur inki trading volume rozana trillions of dollars hoti hai. Yeh am taur par trading ke liye sab se suitable pairs hote hain, khaas karke beginner traders ke liye. Inmein kam spread hota hai, jo ke in pairs par dastiyab hai. Jitna zyada currency pair liquid hota hai, utna hi spread kam hota hai.

Yeh Saat Major Pairs Kyun Ahem Hain?

In saat major pairs par trading shuru karne ka hamesha tajaweez hai, khaas karke jab aap ek acha Forex trading system seekh rahe hain. In pairs mein trade placements ke liye sab se zyada opportunities hoti hain aur yeh Forex day trading ke liye ideal hote hain. Ziyadatar Forex trading systems apne students ko yeh suggest karte hain ke woh in pairs mein trade karein, aur iske liye bohat wajah hai. In saat major pairs mein bohat se opportunities hoti hain jo ek full-time trader ke liye kaafi hoti hain.
Ek aur ahem baat jo aapko yaad rakhni chahiye woh hai ke upar diye gaye saat major pairs technical analysis ke liye bohat acha response dete hain. Yeh shayad is wajah se ho ke in pairs ki liquidity zyada hoti hai, jo inhe market efficient banati hai aur price discovery ko zyada acha banati hai.
Agar aap sirf teen se chaar major currency pairs ko acha tarah se samajh lete hain, to aap bahut zyada paisa kama sakte hain. Forex market mein ziyadatar action in major pairs mein hota hai, kyun ke 90% currency transactions inmein shamil hote hain. Is liye behtar hai ke aap majors ke sath hi rahein.

Note on Currency Specific Fundamentals:

Har major forex pair alag events ke jawab mein alag hota hai aur iske liye ek khaas approach aur strategy ki zarurat hoti hai. Please istemal karein hamare Currency Specific Fundamentals section ko har currency pair ki khaas farqiyat ke baray mein mazeed jan'ne ke liye.

Minor Pairs

Kuch traders currency pairs ke writers ne sirf pehle chaar currency pairs ko majors (EUR/USD, USD/JPY, GBP/USD, USD/CHF) mein shamil kiya hai, baqi teeno ko minor pairs ke taur par daala gaya hai kyunki unka trading volume kam hota hai.
Yeh teen currency pairs ko commodity pairs bhi kaha jata hai kyunki unki economies commodity-based resources ke ird gird ghoomti hain.

The Commodity Currencies

AUD/USD: Aussie (Australian) Dollar
USD/CAD: Dollar Canada or Loonie
NZD/USD: Kiwi (New Zealand) Dollar
Baaki pairs jo minor pairs mein shamil kiye gaye hain, woh hain Scandinavian currencies (USD/NOK, USD/DKK, USD/SEK).

The Scandinavian Currencies

USD/NOK: Norwegian Krone (Norway)
USD/DKK Danish Krone (Denmark)
USD/SEK Swedish Krona (Sweden)

Note on Scandinavian Currencies:

Scandinavian currencies kuch saalon se bohat mazboot hain, khaas karke USD/NOK jo ke charts mein neeche utar gaya hai (weak Dollar / strong Krone) kyunki Norway ki economy mazboot hai aur iski net export oil driven hai (jise ke incidentally NOK ko strong commodity currency banata hai).

Cross-Currency Pairs

Cross-currency pair, ya sirf cross, koi aisa currency pair hai jo U.S. Dollar ko shamil nahi hota.

Trading Reasons

• Diversification
  Currency trading ka zyadatar hissa dollar pairs mein hota hai, to crosses hamesha U.S. Dollar mein trading karne ka acha alternative ban jate hain.
• Currency Targeting
  Crosses traders ko ek specific individual currency ki taraf se trades karne ki izazat dete hain taake woh kisi khaas khabar ya waqiaat ka faida utha sakte hain. For example, aapki research yeh sabit kare ke Euro ko sovereign debt issues (Greece, Ireland aur Portugal) ki wajah se massive problems hain aur yeh kamzor hojayega. Aap is ka faida uthane ke liye initially EUR/USD ko sell karne ka soch sakte hain, lekin phir aap yeh conclude karte hain ke US Dollar bhi zyada behtar nahi hai, kyunki United States ke apne massive debt issues hain. Apka mazeed taqatwar tafseelat ye dikhata hai ke Switzerland ka mazboot tareen maeeshat hai aur kam qarz hai, is liye aap faisla karte hain ke aap EUR/CHF ko short karnay ka faida uthaengay.

Trading the Crosses ke Nuqsanat:

• Zyada Spread
  
  Kuch crosses mein zyada spread hota hai. Maslan, EURNZD ka aam spread 7.5 pips hota hai. Is zyada spread ko hum ne majors ke sath dekha hai. Is tarah ke pairs ka spread zyada hota hai iski kam liquidity ki wajah se (is par kam traders trade karte hain).
• Kam Technical
  
  Kyunki crosses majors ki tarah taizi se nahi trade hote, is wajah se inka technical analysis par kam asar hota hai. Is kaidah ki istisnaat hain EUR/JPY aur GBP/JPY, lekin ye bhi EUR/USD aur GBP/USD se zyada mutaghayyir aur shadeed hain.

Exotic Currency Pairs

Aksar taqreeban sare exotic currencies jo amuman taraqqi pazeer mulkoun se aati hain, woh counter-currency ke tor par USD ke against quote kiye jate hain jaise ke USD/XXX jahan XXX exotic currency ki ISO 4217 code hai (maslan, USD/MXN). Aam taur par istemal hone wale exotic currencies ki ISO codes aur namon ki aik hissi fehrist zailiye di gayi hai jo ke ilmi tarteeb mein hain aur mujarrab tareeqay se tafreeq kiye gaye hain.

Note: Agar exotic currency USD ke against counter-currency ke tor par quote nahi hoti, to isko aksar major currency ke baad doosre number par list kiya jata hai (maslan, EUR/MXN), lekin hamesha istisnaat hote hain (maslan, CZK/JPY).

Exotic Currency Trading Reasons

• County-Specific Economy
  Exotics traders ko mulk ki iqtisadiyat ka faida uthane mein madad dete hain. Maslan, aapne shayad pehle hi note kiya hai ke zyadatar G7 countries economic mushkilat aur qarz se bhari hui hain, aur aap chahate hain ke aap aise mulkoun ki currencies mein diversify karen jo ke maali tor par sab se mazboot hain (maslan, USD/CLP ko bech kar Chilean Peso mein long jana, aur USD/SGD ko bech kar Singapore Dollar mein long jana). Ya phir aap woh shakhs ho sakte hain jo woh currencies short karna chahte hain jo unko maloom hai ke woh gehre maslay mein hain. Hal hi mein, aap Arab dunia mein tensions dekh rahe hain aur chahate hain ke aap Egyptian Pound (EGP/USD) ya Libyan Dinar ko short karen.
• Business
  Zyadatar firms jo in currencies ko trade karte hain, woh is liye karte hain ke unhein zarurat hoti hai. Tasawwur karen ke aap Hungarian construction firm hain jo Japan se machinery khareedna chahta hai (HUF/JPY).

Exotics Trading ke Nuqsanat:

• High Spread
  Zyadatar exotic currency pairs ka spread bohat zyada hota hai. Jab aap EUR/USD jaise pair ke liye kuch pips bharte hain, to aap apne aap ko USD/MXN, CZK/JPY aur AUD/MXN jaise kam liquid exotic pairs mein 200 pips ke spread ke sath dekhte hain. Haqiqatan, har pip ko sirf 1/10 se hisab karna hoga; lekin 1/10 par bhi pip spread zyada hota hai. Jab aap 200 pips se neeche hote hain to ek munafa bakhsh trade karna asal mushkil ban jata hai.
• Erratic Trading (Shadeed Trading)
  Jab currencies taizi se nahi trade hoti, to woh mutaghayyir taur par harkat karti hain. Kam liquidity hone ki wajah se, zyada spread ke sath sath currency pair technical analysis par bhi behtareen jawab nahi deti. Is wajah se, inki high spread transaction cost aur mutabaadil technical istiqraar ke wajah se, zyadatar exotic currency pairs trade karne ke liye munafa bakhsh nahi hote.

**Currency Pairs, Exchange Rates aur Quotes: Forex Mein Samajh**
Forex market, jo duniya ka sab se bara aur dynamic financial market hai, currencies ke exchange par adharit hai. Is market ko samajhne ke liye currency pairs, exchange rates, aur quotes ke concepts ko samajhna zaroori hai. Yahaan in sab ka aik mukammal tajziya hai:

**Currency Pairs:**
Forex trading mein currencies ko pairs mein trade kiya jata hai. Har currency pair do currencies ko represent karta hai jahan aik base currency aur doosri quote currency hoti hai. Misal ke taur par, EUR/USD currency pair ko dekhein, jahan EUR (Euro) base currency hai aur USD (US Dollar) quote currency hai. Agar aap EUR/USD ko trade karte hain, to aap Euro ko US Dollar ke muqablay mein buy ya sell kar rahe hain.

**Exchange Rates:**
Exchange rate woh rate hota hai jis par aik currency ko doosri currency ke muqablay mein exchange kiya jata hai. Forex market mein exchange rates constantly fluctuate karte hain, jo supply aur demand, economic indicators, aur geopolitical events ki wajah se hota hai. Agar EUR/USD ka exchange rate 1.2000 hai, to iska matlab hai ke 1 Euro ke badle aapko 1.20 US Dollars milenge.

**Quotes:**
Forex quotes do tarah ke hote hain: bid aur ask quotes. Bid quote wo rate hai jis par aap apni currency ko sell kar sakte hain, aur ask quote wo rate hai jis par aap currency ko buy kar sakte hain. Dono quotes ke darmiyan ka farq spread kehlata hai. Misal ke taur par, agar EUR/USD ka bid quote 1.1990 aur ask quote 1.2010 hai, to spread 20 pips hoga. Pips, forex market mein price movement ko measure karne ka unit hai.

**Major aur Minor Currency Pairs:**
Forex market mein currency pairs ko major aur minor categories mein divide kiya jata hai. Major currency pairs wo hote hain jo sab se zyada traded hote hain aur inmein USD shamil hota hai, jaise EUR/USD aur GBP/USD. Minor currency pairs mein USD nahi hota, aur yeh pairs relatively less traded hote hain, jaise EUR/GBP aur AUD/JPY.

Samajhna ke kis currency pair ka exchange rate kya hai aur uska quote kaise interpret kiya jata hai, forex trading mein aapko behtar decisions lene mein madad karta hai. Har currency pair aur exchange rate ki dynamics ko samajhkar aap trading strategies ko effectively implement kar sakte hain aur market ki fluctuations ko handle kar sakte hain.

**Currency Pairs, Exchange Rates Aur Quotes in Forex**
1. **Currency Pairs**:
- **Definition**: Currency pairs forex market mein do currencies ke beech ke exchange rate ko represent karte hain. Ek currency pair mein ek currency base currency hoti hai aur doosri currency quote currency hoti hai.
- **Major Pairs**: In pairs mein ek currency hamesha USD hoti hai, jaise EUR/USD, GBP/USD. Yeh pairs sabse zyada traded hote hain aur high liquidity offer karte hain.
- **Minor Pairs**: Minor pairs mein USD nahi hota, aur yeh less liquid aur volatile hote hain. Examples include EUR/GBP, AUD/JPY.
- **Exotic Pairs**: Exotic pairs mein ek currency developed market ki hoti hai aur doosri emerging market ki hoti hai. Examples include USD/TRY (Turkish Lira), EUR/ZAR (South African Rand).

2. **Exchange Rates**:
- **Definition**: Exchange rate ek currency ki value ko doosri currency ke terms mein express karta hai. Yeh rate batata hai ke ek currency ko exchange karne par aapko kitna amount doosri currency mein milega.
- **Bid and Ask Rates**: Forex market mein, bid rate wo rate hota hai jahan traders apni currency bechte hain aur ask rate wo rate hota hai jahan traders currency kharidte hain. Bid rate hamesha ask rate se kam hota hai.
- **Market Orders**: Exchange rates ko market orders ke zariye trade kiya jata hai, jo real-time market conditions aur supply-demand ke basis par fluctuate karte hain.

3. **Quotes**:
- **Direct Quote**: Direct quote ek method hai jisme currency pair ki value ko domestic currency ke terms mein express kiya jata hai. For example, agar USD/JPY 110.50 hai, to iska matlab hai ki 1 USD ke liye 110.50 Japanese Yen mil rahe hain.
- **Indirect Quote**: Indirect quote ek method hai jisme currency pair ki value ko foreign currency ke terms mein express kiya jata hai. For example, agar EUR/USD 1.1200 hai, to iska matlab hai ki 1 Euro ke liye 1.1200 USD mil rahe hain.
- **Cross Rate**: Cross rate tab hota hai jab do currencies ki value ek third currency ke terms mein quoted hoti hai, jo usually USD hoti hai. For example, agar EUR/USD aur GBP/USD ki rates available hain, to EUR/GBP rate ko calculate kiya ja sakta hai.

4. **Quote Formats**:
- **Standard Quote Format**: Forex quotes ko usually 4 decimal places tak express kiya jata hai. For example, EUR/USD 1.1200.
- **Pip**: Forex market mein, exchange rate ki smallest unit ko pip kehte hain. 1 pip typically 0.0001 hota hai. Pip ki value calculate karna trading profits aur losses ko understand karne mein madad karta hai.
- **Fractional Pips**: Kuch currencies, especially JPY pairs, mein fractional pips bhi hote hain, jo 0.01 ke increments ko show karte hain.

5. **Currency Pair Analysis**:
- **Fundamental Analysis**: Currency pairs ki value ko economic indicators, geopolitical events aur central bank policies ke zariye analyze kiya jata hai. Yeh factors currency exchange rates ko influence karte hain.
- **Technical Analysis**: Technical analysis mein charts aur indicators ka use karke currency pairs ke trends aur patterns ko analyze kiya jata hai. Isme moving averages, RSI, aur MACD jese tools shamil hote hain.

6. **Trading Currency Pairs**:
- **Long Position**: Agar trader ko lagta hai ke base currency ki value increase hogi, to wo long position le sakta hai. For example, agar trader ko lagta hai EUR/USD increase karega, to wo buy position lega.
- **Short Position**: Agar trader ko lagta hai ke base currency ki value decrease hogi, to wo short position le sakta hai. For example, agar trader ko lagta hai GBP/USD decrease karega, to wo sell position lega.

7. **Impact of Quotes on Trading**:
- **Volatility**: Currency pair quotes market ki volatility ko reflect karte hain. High volatility pairs large price movements aur trading opportunities provide karte hain.
- **Liquidity**: Major currency pairs zyada liquid hote hain aur narrow spreads offer karte hain. Exotic pairs less liquid hote hain aur wider spreads aur higher slippage ka risk hota hai.

8. **Conclusion**:
- Forex trading mein currency pairs, exchange rates aur quotes ke concepts fundamental hain. Inhe samajhkar traders effective trading decisions le sakte hain aur market trends ko accurately analyze kar sakte hain. Exchange rates aur quotes ke proper understanding se trading strategies ko optimize kiya ja sakta hai aur market fluctuations se benefit uthaya ja sakta hai.