Quote? Have you ever heard someone say something like

“Buy the rumor, sell the news” or “The trend is your friend”? 

These are called quotes in forex trading. But what do they really mean? Are they just cool sayings, or is there something deeper behind them?

If you’re just starting out in forex or you’ve come across traders using strange phrases that sound like secret codes, don’t worry, you’re not alone. 

Forex traders often use short, powerful quotes to share big ideas. But these quotes can sound confusing if you don’t understand the market.

So, what is a quote in forex? Is it just a smart sentence, or does it have something to do with how money is traded between countries? 

Keep reading to find out.

What Is a Quote in Forex?

In forex trading, a quote means the current price of one currency when compared to another. 

Forex is short for foreign exchange, and it’s where people buy and sell money from different countries.

It shows how much of one currency you need to buy one unit of another currency.

Example

If you see this

EUR/USD = 1.1000,
It means 1 Euro equals 1.1000 US Dollars.

That’s a forex quote. It’s not just a number, it’s the price you can use to trade.

Two Types of Prices in a Forex Quote

When you see a forex quote, you’ll often see two prices:

• Bid price: This is the price at which the broker is willing to buy the base currency from you.
• Ask price: This is the price at which the broker is willing to sell the base currency to you.

For example

EUR/USD = 1.1000 / 1.1002

• 1.1000 is the bid price
• 1.1002 is the ask price

That small difference between the two is called the spread, and that’s how brokers make money.

Base and Quote Currency

A forex quote always has two currencies:

• The first currency is called the base currency.
• The second currency is called the quote currency.

So in EUR/USD:

• EUR (Euro) is the base currency
• USD (US Dollar) is the quote currency

This quote shows you how much one Euro is worth in US Dollars.

Why Quotes Are So Important in Forex

You can’t trade forex without quotes. They tell you the real-time prices of currencies. It help you:

• Decide when to buy or sell
• Know how much money you might make (or lose)
• Understand how the market is moving

If you don’t understand forex quotes, trading will feel like a guessing game. But once you get it, the market starts to make more sense.

Conclusion

A quote in forex is more than just a saying, it’s the heart of every trade. 

Whether it’s a trader’s wise words or the exact price of one currency against another, understanding quotes is your first step to becoming confident in forex.