1.  What is Forex Quote?

A Forex market quote displays the exchange rate between two currencies, representing the value of one currency relative to another. It consists of two prices: the Bid price and the Ask price. The Bid price is the price at which traders are willing to buy the base currency, while the Ask price is the price at which traders are willing to sell the base currency. The difference between the two prices is called the Spread.

Forex quotes are usually bidirectional, meaning the quoting party simultaneously provides both their Bid and Ask prices, and the client decides the buying or selling direction. A smaller spread between the Bid and Ask prices means lower costs for investors. The quoted spreads for foreign margin trading are generally between 3-7 pips internationally, 6-8 pips in Hong Kong, and vary from 10-40 pips for domestic bank spot trading.

2.  Relevant Terms You Need to Understand:

(1)Base Currency: The currency listed first in a currency pair. It is the reference currency in a trade.

When the U.S. dollar is the base currency, you can think of the foreign exchange rate as how much one U.S. dollar is worth in another currency. When the U.S. dollar is the base currency, if the exchange rate goes up, it means the dollar is appreciating while the other currency relative to the dollar is depreciating. A rise in the quote indicates that the dollar can be exchanged for more of the other currency than before.

(2)Quote Currency: The currency listed second in a currency pair. It is the currency used to exchange for the base currency.

(3)Bid: The price at which traders are willing to buy the base currency.

(4)Ask:The price at which traders are willing to sell the base currency.

(5) Spread: The difference between the bid and ask prices, is also a source of profit for brokers.

(6) Quote Convention: How quotes are displayed, usually in the form of numbers with several decimal places. For example, the quote for EUR/USD is 1.2500, and for GBP/JPY, it is 135.25.

3、Forex Quote Methods:

（1）Direct Quote Method: Represents how much one unit of a foreign currency can be exchanged for in U.S. dollars, with the dollar as the pricing currency. Currently, only the British pound, euro, Australian dollar, and New Zealand dollar use this quoting method, such as GBP/USD, EUR/USD, AUD/USD, and NZD/USD.

For example, GBP/USD=1.24 means 1 British pound equals 1.24 U.S. dollars.

（2) Indirect Quote Method: Represents how much one unit of U.S. dollars can be exchanged for in foreign currency, such as USD/CAD, USD/JPY, USD/CNY, etc., with the dollar as the base currency.

For example, USD/CAD=1.38 means 1 U.S. dollar equals 1.38 Canadian dollars.

Soure: uSMART

This diagram is provided for illustrative purposes exclusively

How to place a trade on uSMART mobile application:

After logging into the uSMART SG APP, select "Discover" from the bottom of the page, then choose "Forex" from the top menu to learn about the Singapore dollar/Japanese yen  (SGD/JPY) pair. Click on "CFD Trading" in the bottom right corner, select the "Buy/Sell" function, then choose the price, quantity, and trading conditions before submitting the order. Please refer to the image guide below:

This diagram is provided for illustrative purposes exclusively

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We have based this article on our internal research and information available to the public from sources we believe to be reliable. While we have taken all reasonable care in preparing this article, we do not represent the information contained in this article is accurate or complete and we accept no responsibility for errors of fact or for any opinion expressed in this article. Opinions, projections and estimates reflect our assessments as of the article date and are subject to change. We have no obligation to notify you or anyone of any such change. You must make your own independent judgment with respect to any matter contained in this article. Neither we or our respective directors, officers or employees will be responsible for any losses or damages which any person may suffer or incur as a result of relying upon anything stated or omitted from this article.

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