How to read a forex quote
Every forex chart starts with a quote such as EUR/USD 1.0850 / 1.0852. Once you can read those two numbers, the rest of forex — pips, spreads and position sizes — starts to make sense.
By the TradeFather education team · Updated 27 Oct 2026 · Educational content, not financial advice
- The first currency is the base; the price shows how much of the second (quote) currency buys one unit of it.
- Bid is the price you can sell at; ask is the price you can buy at.
- The gap between bid and ask is the spread — a cost you pay on every trade.
- For most pairs a pip is the 4th decimal; for JPY pairs it is the 2nd decimal.
Base currency and quote currency
In GBP/USD = 1.2700, GBP is the base currency and USD is the quote currency. The price says 1 British pound costs 1.27 US dollars.
If the number rises to 1.2750, the pound has strengthened against the dollar. If it falls to 1.2650, the pound has weakened. Buying a pair means buying the base and selling the quote at the same time.
| Quote | Base | Quote currency | Meaning |
|---|---|---|---|
| EUR/USD 1.0850 | Euro | US dollar | 1 euro = 1.0850 dollars |
| USD/JPY 150.20 | US dollar | Japanese yen | 1 dollar = 150.20 yen |
| USD/INR 83.40 | US dollar | Indian rupee | 1 dollar = 83.40 rupees |
| USD/PKR 278.00 | US dollar | Pakistani rupee | 1 dollar = 278 rupees |
Bid, ask and the spread
A broker always shows two prices. In EUR/USD 1.0850 / 1.0852, the bid (1.0850) is what you receive when you sell, and the ask (1.0852) is what you pay when you buy.
The 0.0002 difference is the spread — 2 pips here. A new buy trade starts slightly negative because you bought at the ask but your position is valued at the bid. Spreads widen during news, at session rollovers and on less traded pairs.
Sell price. Shown on the left or lower in most platforms.
Buy price. Always a little higher than the bid.
Ask minus bid. Your built-in cost to open the trade.
Pips and pipettes in a quote
For EUR/USD, a move from 1.0850 to 1.0851 is one pip (0.0001). Many platforms show a fifth digit, such as 1.08505 — that small last digit is a pipette, a tenth of a pip.
For yen pairs, one pip is 0.01, so USD/JPY moving from 150.20 to 150.21 is one pip. Mixing these up is the most common reason beginners miscalculate their stop-loss.
Reading USD/INR and USD/PKR
USD/INR and USD/PKR are quoted with the dollar as the base, so a higher number means the rupee has weakened. If USD/INR moves from 83.40 to 83.60, each dollar now costs 20 paise more.
In India, exchange-traded rupee pairs such as USD/INR are offered on recognised exchanges through SEBI-registered brokers. Read the legal pages before choosing where to trade.
Frequently asked questions
+Which price do I buy at?
You buy at the ask (the higher price) and sell at the bid (the lower price).
+Why is my trade negative as soon as I open it?
Because of the spread: your buy is valued at the bid, which is below the ask you paid.
+What does a rising USD/INR mean?
The dollar is getting stronger and the rupee weaker — each dollar costs more rupees.