Currency pairs where the USD is the quote currency are referred to as direct rates. This wikipedia forex lot pricing true for such currencies as the EUR,GBP, NZD and the AUD. Pip stands for “price interest point” and refers to the smallest incremental price move of a currency.
Tick size is the smallest possible change in price. USD contract initially bought at 1. Most currencies are traded indirectly against the U. The USD is the “base currency,” the CAD is the “quote currency” and the rate quote is expressed as units per USD. JPY contract currently trading at 120. JPY contract initially bought at 120. Currency pairs that do not involve the USD are referred to as cross rates.
Even though the USD is not represented in the quote, the USD rate is usually used in the quote calculation. Again, the EUR is the base currency and the GBP is the quote currency. The base quote is the current base pair quote. GBP contract currently trading at . GBP contract initially sold at . Retail off-exchange foreign currency trading involves the risk of financial loss and may not be suitable for every individual.