Forex basics · Beginner

How to Read a Forex Quote

A 1-minute lesson from the MarketPro academy, one of 24 in forex basics.

Last reviewed 15 September 2026 by the MarketPro research desk · Editorial policy

Short answer

In EUR/USD = 1.0850, the euro is the base currency and the dollar is the quote currency. The number means one euro costs 1.0850 dollars.

Base and quote currency

In EUR/USD = 1.0850, the euro is the base currency and the dollar is the quote currency. The number means one euro costs 1.0850 dollars. If the rate rises, the base has strengthened against the quote; if it falls, the base has weakened.

Bid, ask and spread

A full quote shows two prices, for example 1.08500 / 1.08512. You sell at the bid (lower) and buy at the ask (higher). The gap between them is the spread — your entry cost.

Direction in practice

Going long (buy) EUR/USD profits if the euro strengthens against the dollar.
Going short (sell) EUR/USD profits if the euro weakens against the dollar.

Every trade is therefore a relative bet: you are never just buying euros, you are buying euros with dollars. Strong economic news for the US can move EUR/USD down even if nothing changed in Europe.

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Reading a change

If EUR/USD moves from 1.0850 to 1.0900, that is 50 pips. Percentage-wise it is about 0.46% — currency moves are small in percentage terms, which is why traders use pips and why leverage exists (and why leverage is dangerous).

Practice: open any quote board and, for three pairs, say out loud which currency you would be buying and which you would be selling if you went long. It sounds trivial, but confusing quote direction is a genuinely common beginner error.

Step 8 of 12 on Forex Foundations

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Run the numbers while this is fresh

The arithmetic in this category has a free calculator on this site, no sign-up and nothing leaves your browser: Pip value calculator, Position size calculator, Margin calculator, Leverage calculator.

Written and reviewed by the MarketPro research desk

MarketPro is a trading-signal and trading-education app operated by Harajuku Holdings LTD (Cyprus). Our signal desk publishes and tracks every trade idea in-app, and every page here is checked against the app's live behaviour before publishing. Last reviewed 15 September 2026. How we produce signals and content · About MarketPro

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