The rules of spot forex trading

Two-way quotation principle. The basic program of spot foreign exchange trading: inquiry + quotation + transaction + confirmation. Spot foreign exchange trading is the most basic transactions in foreign exchange trading, generally every spot foreign exchange trading needs to be completed through the four steps of inquiry quotation, transaction, confirmation. The quotation side in receipt of the inquiry side inquiry, generally the fastest speed to quote.

Because both sides of the transaction on the general level of the exchange rate are relatively clear, so the quote usually only need to report the exchange rate of the decimal. But sometimes the foreign exchange market exchange rate fluctuations will be unusually intense, in a very short period of time the exchange rate of the large number of changes, in this special case, the best quote will be the exchange rate of the large number of simultaneous report chapter out, so as not to cause misunderstanding. Quote speed and the size of the bid-ask spread is to reflect a trader's quote level and market experience is an important symbol, and directly affects its bank in the foreign exchange market reputation and competitiveness; but more importantly, traders should be able to profit from the quote. This requires traders to master Y fixed quote skills, and have a rich market experience.

When the quoting party quoted the exchange rate that the inquiring party needs to juggle, the inquiring party should react quickly to the quotation; either to close the deal, or to give up, and should not haggle with the quoting party. By convention, spot transactions require the inquiry body price within a few seconds to make a deal or not, otherwise it will bring the quote side of the exchange rate risk. Once the transaction, the exchange rate level, transaction amount, transaction currency and other details have been determined, binding on both sides of the transaction, unless both parties agree, otherwise no party has the right to unauthorized changes in the details of the transaction to modify or deny.