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28 December 2020,06:34
What is Forex
28 December 2020, 06:34
All forex quotes have two prices attached to them, one is a bid price, and the other an ask price.
The bid price – if you want to SELL the base currency, then you would click on the bid price.
The bid price is the price at which the other party is willing to buy the base currency you want to sell in exchange of the quote currency.
The ask price – if you want to BUY the base currency, then you would click on the ask price.
The ask price is the price at which the other party is willing to sell the base currency to you in exchange for the quote currency.
The BID price is always lower than the ASK price and the difference between the two is known as the SPREAD.
The spread is the difference in price between buying and selling the base currency – this difference is charged to the client and paid to the Market Maker
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