How to correctly read stock quotes of currencies and stocks
People who are far from working with the currency exchange are notalways understand what a stock quote is and how to read it correctly. To begin with, we are talking about the relative value of the two currencies. That is, the value of a unit of one currency is expressed in some number of units of another. After all, it is impossible to assess the value of the dollar, for example, if you do not compare it with other currencies.
Representing the value of currencies on the exchange
Any stock quote looks liketransfer through slash of two state currencies. So, to find out how the Russian ruble is currently being valued, you need to look at its value relative to the dollar. Since the dollar is used throughout the world for settlements, as a rule, in every country, its relative value is recorded to the national currency.
Since we are talking about stock quotes,where a lot of speculative transactions are taking place, the exchange participants need constant monitoring of the slightest changes in the exchange rate, so the currency quote of any pair is displayed in the form of a changing online chart, where the slightest fluctuations are clearly visible.
Speculation on currency price changes
Usually for a unit of exchange quotation change onthe fourth digit after the comma is adopted, that is, 1/10 000 relative value of the currency. Changing prices by just a few points or pips can lead to big losses or, conversely, to substantial profits, as trading on the exchange is carried out using the shoulder: having on its account a small amount of money, a member of the exchange can make deals with large amounts of lots.
The picture above shows the exchangequotations of the ruble against the dollar in the form of a line and in the form of candles, which are used by traders to analyze the situation on the market (left in the corner). At the time of writing, the value of the dollar was 57.9 rubles - this is the amount in rubles given for one American dollar.
Direct and reverse exchange quotations of currencies
The USD / RUB graph refers to the reverse quotations forrelation to the Russian ruble. Direct quotes are those in which the national currency is in first place and is valued in dollars or another currency. In the USD / RUB pair, the US dollar is the base currency (in the first place), and the Russian ruble is quoted. In exchange trades most of the national currencies are represented in the form of reverse quotations, in which the dollar is the first place. Direct are usually used for strong currencies: the British pound and the currencies of former British colonies (Australia, New Zealand), as well as the euro.
In addition to direct and reverse quotes on the exchange, you cansee cross-courses. This is the relative value of one currency in another without the participation of the US dollar. Examples of the cross-rate: EUR / JPY, AUD / NZD, where the euro is trading against the Japanese yen, and the Australian dollar is against the New Zealand dollar.
What is the spread, Bid and Ask prices?
It does not matter whether a person is going to just buy orTo sell the currency for yourself or going to make money on the exchange on speculative transactions, he will have to face two prices: Ask - the price of purchase and Bid-sale. The first is always slightly larger than the second. The difference between them is called a spread, and it gives the chance to exist an exchange, which receives a profit in the form of a spread raised from bidders. That is, the stock exchange, like an ordinary exchange office or a bank, sells currency to traders more expensively, and buys less.
In the above image, a redThe horizontal line is the Ask price, and the black line is Bid. As we see, the difference between them is 3 last digits after the comma or 3 points. In the left part of the terminal, the image shows exchange quotations of various currency pairs that are available for trading.
In addition to currencies, manyother assets. According to experienced traders, it is better to use stock trading for making money on speculation. In Russia, at the moment, trades are held on the Moscow Stock Exchange, which combined the previously existing separately MICEX (currency exchange) and RTS (commodity).
On the website of the Moscow Stock Exchange you can find not onlystock quotes of various stocks online, but also a lot of information that helps the trader in making decisions on speculative positions. In particular, the number of transactions per day for each asset, the volume of trading in rubles or in the lot currency and much more. On the Moscow stock exchange, all prices for shares are indicated in rubles. The most popular for traders are shares of Sberbank and Gazprom. The volume of trading on the first day is more than 2.5 billion rubles, which makes the asset volatile and therefore extremely attractive for traders.
Exchange quotes of currencies and stocks mayIt is used both for personal purposes to form a portfolio of assets, and for the purpose of making money on speculative transactions on the stock exchange. It is important to understand and be able to correctly calculate the value of the base currency with respect to the quoted currency or vice versa at any time.