A very basic question but I thought I better ask to confirm that my understanding is correct. Sorry if you find this very basic.
If they (i.e. the brokers) quote EUR/USD Ask = 1.3316 => This mean that I can BUY 1 Euro for 1.3316 USD.
Now if I wanted to buy USD for EUR (USD/EUR), I can get that price by looking at 1/(EUR/USD Bid). So, continuing with the above example, if they quote EUR/USD Bid = 1.3313, then that mean that if I want to BUY 1 USD, I can get it for
1
_______ = 0.751145
1.3313
0.751145 EUR. Is my understanding of Bid and Ask correct for forex?
If they (i.e. the brokers) quote EUR/USD Ask = 1.3316 => This mean that I can BUY 1 Euro for 1.3316 USD.
Now if I wanted to buy USD for EUR (USD/EUR), I can get that price by looking at 1/(EUR/USD Bid). So, continuing with the above example, if they quote EUR/USD Bid = 1.3313, then that mean that if I want to BUY 1 USD, I can get it for
1
_______ = 0.751145
1.3313
0.751145 EUR. Is my understanding of Bid and Ask correct for forex?