Forex Bid And Ask Explained
Just like other markets, forex quotes consist of two sides, the bid and the ask: Helpful hint. This means: The BID represents the price at which the forex broker is willing to buy (from you) the base currency in exchange for the counter currency The Bid-Ask Spread Defined. Here's another forex quote that helps make clear the meaning of these terms in the forex market: EUR/USD = 1.3600/05 Here the bid is 1.3600, and the ask is 1.3605 Understanding Bid-Ask Spread. It is an important factor to take into consideration when trading securities, as it is essentially a hidden cost that is incurred during trading In this example, buyers are willing to pay $20.80 (BID) for this stock, but sellers want at least $21.50 (ASK). The difference between the bid and ask prices is referred to as the bid-ask spread. And your forex broker is forex bid and ask explained the price maker, also known as a market maker. Considering the Bid-Ask Spread. The difference between the bid and ask price is called “the spread,” and in this example, the spread is $0.60. My broker is cmc markets, and I think their bid and ask is a bit different what this article describes. In general, the smaller the spread, the better the liquidity Bid-Ask Spreads in the Retail Forex Market. The bid-ask spread benefits the market maker and represents the market maker’s profit. To understand why there is a "bid" and an "ask," one must factor. In forex trading, currencies are always quoted in pairs – that’s because you’re trading one country’s currency for another.