EUR/USD rising means the Euro is strengthening. USD/JPY rising means the Dollar is strengthening. Same direction, opposite meanings. While beginners get confused by which currency is moving, professionals instantly know because they understand quote structure. Direct vs. Indirect isn't academic—it's the difference between buying when you meant to sell and executing your strategy correctly.
Welcome to Lesson 4
You've mastered the mechanics. But here's the reality check:
Knowing how to trade means nothing if you misread the quote.
The Professional Difference: Retail traders sometimes enter trades based on "gut feel" about which currency will strengthen, without properly understanding quote structure. Professional traders always verify which currency is Base and which is Quote before clicking buy or sell. This clarity eliminates costly execution errors.
Lesson Chapters
1Chapter 1: Anatomy of a Currency Pair
2Chapter 2: Direct Quotes Explained
3Chapter 3: Indirect Quotes Explained
4Chapter 4: How to Identify Direct vs Indirect
5Chapter 5: Summary, FAQs & Quiz
Call to Action
Master Quote Interpretation
Practice reading Direct and Indirect quotes on a demo account. Learn to instantly identify Base vs. Quote currency, interpret price movements correctly, and execute trades with confidence.
Deriv
- Zero-spread accounts for tighter entries
- Swap-free (Islamic) available
XM
- Consistently low spreads on majors
- Micro accounts — start with a smaller risk
- Swap-free (Islamic) available
- No trading commission
Proceed to Lesson 5: What Moves Forex Prices?
Prerequisites
This is a foundational lesson - no prior knowledge required. Basic understanding of currency pairs recommended.
Ready to understand quote structure? Mastering Direct vs Indirect quotes eliminates execution errors.
Ready to continue?
Mark this lesson as complete to track your progress.