Reading MT4 Forex Quotes
The initial thing that traders should know to be able to trade Forex is to read the MT4 Forex quotations. Yes, this looks not difficult but must be understood. The quotations that appear on the MT4 platform include the currency pair and always move on following the real price.
The usual currency pair we refer to as a pair. For example: GBPUSD, the pair between Pound and US Dollar. The first currency is the base currency and always 1. Pair GBPUSD 1.29000 can be read as 1 GBP = 1.29 USD.
MT4 quotation appearances we often see two numbers, namely Bid and Ask columns. We use the Bid price if we want to sell (SELL) and Ask price if you want to buy (BUY). This price is always there to be offered to the traders.
We also know that there is a difference between Bid (SELL) and Ask (BUY). Well, that distance is SPREAD. Each broker offers different spreads and for some pairs also has a large spread. In addition, there are also brokers who offer spread fix (fixed) and some are floating (not fixed). Each of these has its flaws and advantages.
The lower the spread then investors have a greater profit opportunities. But that does not mean that the big spread does not have a profit opportunity. Usually a large spread occurs due to hectic fluctuations or indeed the pair’s character fluctuates greatly.
Please see pictures, composed many main pair and pair cross. The column marked ‘!’ Is the amount of spread occurring at that time. We use an example of a broker with spread floating.
Also visible columns ‘high’ and ‘low’. That explains the highs and lows today. Also the ‘Time’ column shows the time on the broker server.
We must find out the time difference between the broker server and the time we live in order not to mis-analyze. The ‘Time’ column moves from 00:00:00 to 23:59:59. When the screenshot is taken, the time on our laptop shows at 09:38 AM. This means we have a time difference of 4 hours with the server.
To show Market Watch like a picture, click on the ‘View’ menu and click ‘Market Watch’.
To display all available pairs, right-click on ‘Market Watch’ and select ‘Show All’.