Reverse direction of currency pair?
I'm new to forex and MQL5 (but have a software background) so I apologize in advance if this is posted in the wrong forum. I'm writing an EA but am struggling a little with the terminology and workings of the forex market.
Take the currency pair EURUSD at a bid of 1.14131 and an ask of 1.14161. I understand that to mean:
- I can sell 1 EUR to buy 1.14131 USD.
- I can sell 1.14161 USD to buy 1 EUR.
Is my understanding of bid/ask correct?
Now my real question is, if I have 1 USD, how many EUR can I buy? I suspect it is 1 divided by the ask (1.14161), so roughly 0.8759.
Is that process correct?
Thank you for your time and effort, they are most appreciated.
Yes ... both of them are correct.
Thank you.
Anyone know why they don't just give a reverse price? Seems like an anachronism.
Thank you.
Anyone know why they don't just give a reverse price? Seems like an anachronism.
It is a new term )
What do you exactly mean with "reverse price"?
Because, you have a brain, a calculator and a computer! Why have a superfluous secondary symbol for exactly the same thing?
Why is there only a EURUSD symbol, and not a USDEUR symbol?
The reason for this is mostly convention.
- Nick K. Lioudis
- www.investopedia.com
I'm new to forex and MQL5 (but have a software background) so I apologize in advance if this is posted in the wrong forum. I'm writing an EA but am struggling a little with the terminology and workings of the forex market.
Take the currency pair EURUSD at a bid of 1.14131 and an ask of 1.14161. I understand that to mean:
- I can sell 1 EUR to buy 1.14131 USD.
- I can sell 1.14161 USD to buy 1 EUR.
Is my understanding of bid/ask correct?
Now my real question is, if I have 1 USD, how many EUR can I buy? I suspect it is 1 divided by the ask (1.14161), so roughly 0.8759.
Is that process correct?
Thank you for your time and effort, they are most appreciated.
No, this is not the correct "understanding". You probably want to checkout babypips.com, they have some really good beginner level courses.
No, this is not the correct "understanding". You probably want to checkout babypips.com, they have some really good beginner level courses.
I've been through the first 25 lessons of Babypips and skimmed future ones, but I did not see anything that talked about my reverse process. One would think this isn't that hard but it seems you believe my first try at it is wrong. Could you point me to the lesson you're thinking of or tell me why my reverse process is incorrect?
It's not your "reverse process" that is incorrect, rather, your fundamental understanding of how forex instruments work. You are intermingling the concepts of price and volume and it just doesn't work like that. In order to reverse your position - you need to simply manage your net position size to be an equal volume in the opposite direction.
2 Lots Long --reversed--> 2 Lots short
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I'm new to forex and MQL5 (but have a software background) so I apologize in advance if this is posted in the wrong forum. I'm writing an EA but am struggling a little with the terminology and workings of the forex market.
Take the currency pair EURUSD at a bid of 1.14131 and an ask of 1.14161. I understand that to mean:
Is my understanding of bid/ask correct?
Now my real question is, if I have 1 USD, how many EUR can I buy? I suspect it is 1 divided by the ask (1.14161), so roughly 0.8759.
Is that process correct?
Thank you for your time and effort, they are most appreciated.