#Forex #Guide - Bid And Ask Price

Bid And Ask Price Find out how to interpret the Bid and Ask price on the Forex quote screen, what Spread is and why the price you can Buy and Sell at is so important... Currency Base Quote Pair Currency The Base Currency is the 1st currency- It has an assigned value of 1- For every 1 of these you can Currency All Forex trades are The Quote currency is the 2nd currency- It will cost you X of these to BUY 1 of the conducted in a Currency pair which consists of a Base currency and a Quote currency BUY X of the Quote currency Base currency Quote / Spot FX EUR/USD 55.8 Rate Sell Buy Two prices are quoted The Bid price and the Ask price 12996.1 12996.9 0.8 Bid (SELL) Ask (BUY) Price Price The Bid price is the best price at which you can SELL this Currency pair - It is, obviously, always lower than the best price at which you can Buy it (the Ask price) The Ask price is the best price at which you can BUY this Currency pair - It is, obviously, always higher than the best price at which you can sell it (the Bid price) The difference between the Spread Bid (SELL) Price and the Ask (BUY) Pri The Spread is the reason that, as you soon as you place a trade, your Profit & Loss is immediately Negative Obvious really as the price at which you can BUY (the Ask price) is always higher than the price at which you can SELL (the Bid price) and vice versa i NOTE Forex Useful Forex Trading Strategies That This is also how your broker makes money EVERY time you trade! Work