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How to Verify the Accuracy of Quotes in Forex

Sunday, 13 August 2017 23:19
How to Verify the Accuracy of Quotes on Forex

On the Forex market, traders sometimes face the unusual behavior of the stop loss and take profit orders. You can see such a phenomenon as a sudden jump in the price line in the direction opposite to your transaction. It triggers the stop loss, and the price suddenly returns to the previous values.

The reason for such an event may be an inaccuracy in the broker's quotes. Apparently, a trader needs to know how to check them, and there are several ways for it.

What is a Quotation?

A quotation is a price at which traders agree to buy the assets or sell them. In the Forex market, this is the value of the currency, displayed by a different currency, in a quantitative ratio. The first currency is called the base, and the second currency is known as the quoted one.

Some factors influence the formation of the rate. It is the political situation, rates of the Central Banks, and social factors. With a large number of the determining factors, it’s important to check the broker's quotes for their compliance with the actual situation on the market.

Checking the Quotations

On the one hand, many online resources publish the exchange rates. But they often differ from each other. The data of different brokers may also be different. Moreover, some brokers change this ratio, so that profitable trades go to a loss, due to the false stop loss triggering. Apparently, such schemes are used only by the fraudulent organizations, and you need to be able to recognize them correctly.

  • The first method

On the Forex market, the primary sources of exchange rate data are the Dealing Centers. They receive information from reports of the banks and have direct access to the agencies that publish the financial news. Therefore, it’s logical to search for such information on the substantial investment resources.

On such portals, complete information is provided, as well as the archive of the quotations.

  • The second method

You can also install several trading terminals from different brokers. Open all the terminals at the same time and check courses.

You can also use the web terminals, instead of installing many programs on your computer. You just need to register on the broker’s source and see all the necessary information directly in your browser.

Perhaps you may never feel the need for verification. Moreover, even the dirty brokers, as a rule, don’t pay attention to the deposits with the balance of less than $ 100.

However, it’s better to protect yourself and your trade. Any inaccuracies in the exchange rate may lead to either the unpleasant experience or monetary losses.

Stay informed, watch the news, and success won’t be long in coming!

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Eric	Conley
Eric Conley

Forex analyst. I keep my own blog, work with Forex brokers. I also do online training, write manuals and analytical reviews for traders