NUAGFX Note 03 - What is Pip? How to read a Forex Quote? | 什麼是Pip？ 如何閱讀外匯報價？

Series Episode	Direct Link
NUAGFX Note 02 - Ways to invest or speculate in currencies. 投資或投機貨幣的方式	Link
NUAGFX Note 01 - Basic Forex 101 外匯 101	Link

The recent US-China Trade Wars affecting the global financial markets, stock, futures, and forex markets around the world have been going through turbulence in this period of time.

However, crisis creates opportunities. There are ways to speculate by surfing such waves created from the turbulence.

Such as - The foreign exchange market, which is usually known as “forex” or “FX,” is the largest financial market in the world. Needless to say that it is a market that liquidity and volatility are high. People without adequate knowledge may suffer huge losses.

I have drafted down a few notes during the time I looked at FX, and would also love to share with people who are interested in it.

最近影響全球金融市場，股票，期貨和外匯市場的美中貿易戰在這段時間內一直在經歷動盪。然而，危機創造機會。 有一些方法可以通過衝浪從湍流中產生的波浪進行推測。外匯市場通常被稱為“外匯”或“外匯”，是世界上最大的金融市場。毋庸置疑，這是一個流動性和波動性很高的市場。 沒有足夠知識的人可能遭受巨大損失。在我看FX時，我已經起草了一些筆記，希望可與對此感興趣的人分享。

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Source - Investpedia

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This time I want to continue below,

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What is Pip?

Pip is the unit of measurement to express the change in value between two currencies.

Ex: If EUR/USD moves from 1.1050 to 1.1051, that 0.0001 USD rise in value is 1 Pip.

什麼是Pip？Pip是表示兩種貨幣之間價值變化的計量單位。

例如：如果歐元/美元從1.1050上升至1.1051，那麼0.0001美元的價值上漲是1點。

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Source from babypips

### How to read a Forex Quote

Here let's take another example of Great Britain Pound/U.S Dollar,

如何閱讀外匯報價? 這裡讓我們再看一下英鎊/美元的例子，

GBP/USD = 1.215

The base currency is the 1st currency in any currency pair. The quote shows how much the base currency is worth as measured against the second currency.

Quote Currency is the 2nd currency in any currency pair. This is also called the pip currency and any unrealized profit and loss are expressed in this currency.

Therefore, from the above example, It means 1 GBP is worth 1.215 USD.

As you may have noticed, in the forex market, the US dollar is normally considered as the base currency for quotes.
This is set to express how much a unit of 1 USD worth of the quote currency in the pair.

基礎貨幣是任何貨幣對中的第一貨幣。 報價顯示基於第二種貨幣計算的基礎貨幣的價值。

報價貨幣是任何貨幣對中的第二貨幣。 這也稱為點差貨幣，任何未實現的損益均以該貨幣表示。

因此，從上面的例子來看，這意味著1英鎊的價值為1.215美元。您可能已經注意到，在外匯市場中，美元通常被視為報價的基礎貨幣。這將表示該貨幣對中1美元的報價貨幣單位。

BASE CURRENCY / QUOTE CURRENCY

When buying, it takes you 1.215 USD for buying 1 GBP
When selling, it gives you 1.215 USD for selling 1 GBP

If you buy GBP/USD = buy EUR, sell USD

You would buy the pair if you think the base currency will gain value relative to the quote currency.

You would sell the pair if you think the base currency will lose value relative to the quote currency.

基礎貨幣/報價貨幣

購買時，購買1英鎊需要1.215美元。出售時，賣出1英鎊給你1.215美元

如果您購買英鎊/美元=買入歐元，則賣出美元

如果您認為基礎貨幣相對於報價貨幣將較強勢，您該購買該貨幣對。

如果您認為基礎貨幣相對於報價貨幣將較弱勢，您該賣出該貨幣對。

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The Bid, Ask and Spread

Bid price = The best available price at the moment you can get if you sell to the market at your broker platform.

Ask price = The best available price at the moment you can get if you buy to the market at your broker platform.

Difference between the bid and ask price is known as the spread or pips.

買價, 賣價 和 買賣差價

賣出價 = 當您在經紀商平台上賣給市場時，您可以獲得的最佳賣價。

買入價 = 如果您在經紀商平台上想進入市場時，您可以買入的最佳買價。

買入價和賣出價之間的差異稱為點差。

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I would very much appreciate If you like this article.

如果你喜歡這篇文章，我將非常感激。

Cheers!