Anyone who gets involved in Forex trading should understand the basic principles of Forex market as well as learn the terms used by all currency market participants. One of the most important concepts that must be known and understood by every FX trader beginner is a concept of "Forex Quotes".
Forex quotes represent the value of one currency unit in relation to another currency. In simple terms, Forex quote is the value of the currency that you want to buy or sell at the particular moment in time.
In order to benefit from fluctuations of currency rates, participants are attempted to buy as low as possible and sell as high as possible.
Quotes on the Forex market are influenced by many factors. Among top influencers of currency rates are political and economic factors: changes in interest rates, inflation and important political events. Forex quotes are frequently affected by central banks of different countries, which undertake big foreign exchange interventions to bump up the price of a particular currency, or, on the contrary, to reduce its current rate.
Any of the above factors may cause abrupt changes in Forex exchange market quotes, as well as cause a significant amount of market transactions in one direction. With that being said, even the largest banks cannot have long lasting impact on the Forex quotes because of the immense scale of Forex market, which at times reaches up to $ 5 trillion per day.