How to read Forex Prices

Below are some sample prices as to what you may see while looking at your brokers real-time Forex prices... Below the SAMPLE price board is a description of how you would read each:

In the example U.S. Dollar / Japanese Yen (USD/JPY)
The sample price shown of 106.07 means that the cost of one U.S. dollar is 106.07 Japanese yen. As the dollar strengthens relative to the yen, then this price will increase to, say, 106.85. If the dollar weakens relative to the yen (in other words, the yen strengthens relative to the dollar), then this price will decline to, say, 105.35.

In the example U.S. Dollar / Canadian Dollar (USD/CAD)
The sample price shown of 1.3257 means that the cost of one U.S. dollar is 1.3257 Canadian dollars. As the U.S. dollar strengthens relative to the Canadian dollar, then this price will increase to, say, 1.3288. If the U.S. dollar weakens relative to the Canadian dollar (in other words, the Canadian dollar strengthens relative to the U.S. dollar), then this price will decline to, say, 1.3197.

In the example U.S. Dollar / Swiss Franc (USD/CHF)
The sample price shown of 1.2826 means that the cost of one U.S. dollar is 1.2826 Swiss francs. As the dollar strengthens relative to the Swiss franc, then this price will increase to, say, 1.2854. If the dollar weakens relative to the Swiss franc (in other words, the Swiss franc strengthens relative to the dollar), then this price will decline to, say, 1.2774.

In the example Euro / U.S. Dollar (EUR/USD)
The sample price shown of 1.2089 means that one Euro costs 1.2089 U.S. dollars. Consequently, one can quote the price as $1.2089. As the Euro strengthens relative to the dollar, then this price will increase to, say, 1.2124. If the Euro weakens relative to the dollar (in other words, the dollar strengthens relative to the Euro), then this price will decline to, say, 1.2013.

In the example British Pound / U.S. Dollar (GBP/USD)
The sample price shown of 1.8331 means that one British Pound costs 1.8331 U.S. dollars. Consequently, one can quote the price as $1.8331. As the pound strengthens relative to the dollar, then this price will increase to, say, 1.8382. If the pound weakens relative to the dollar (in other words, the dollar strengthens relative to the pound), then this price will decline to, say, 1.8288.

Reading Prices is continued on the next page, please click here.