Information on currency trading

CURRENCY PAIRS Currency pairs are always listed in the same order. For example, the most commonly-traded currency pair consists of the Euro and the U. USD and never the reverse order. SPREAD The SPREAD is the difference between the two prices. The bid price is always less than the ask price because brokers pay less than they receive for the same currency pair.

For example in the rate panel shown, the bid price is 1. You could sell one Euro for 1. ASK PRICE The ASK price is the rate at which your broker is willing to sell and represents the rate you must pay to buy the base currency. In the example 1 Euro will cost you 1. What is a PIP and what is it’s value?