A Forex market price of a currency pair is shown or quoted by two symbols, Ask and Bid. Ask price is always the highest price in the pair’s quotation. The Ask price is the price at which a trader could buy the currency, which comes first in the abbreviation of the currency pair. By doing this, a trader is going to sell the currency standing second.
We can therefore see that A Forex Ask price is the price at which the market ( or forex broker) is willing to sell a specific Forex Trading currency pair in the online Forex market. This is the price at which you the trader will buy it . It is shown on the right of the Forex quote. For instance, in the currency pair EUR/USD quoted at 1.2342/47, the ask price us 1.2347. This tells you that you can buy one EUR for 1.2347 USD.
Now moving on to the the Bid price. This is the lowest price in the quotation of the currency pair. The bid price is the price at which you the trader will sell the currency which comes first in the abbreviation of the currency pair.
A Forex Trading Bid price is therefore price at which the market ( or forex broker) is willing to buy a particular currency pair in the Forex trading market. It is the price that you the trader of Forex can buy the base currency in the pair. Looking at the quote of a currency pair, the Forex bid price appears to the left of the currency quote. Take for instance, the EUR/USD pair is 1.2342/47, then the bid price is 1.2342. This means you can sell the EUR for 1.2342 USD.
Does this seem difficult? Let us take a bigger example to understand it better: Let us take that we have the currency pair of EUR/USD with the quotation of 1.3652/1.3655. This tells you that you can buy 1 euro for 1.3655 dollars and then sell 1 euro for 1.3652 dollars. The difference between these values in the quote(the bid price and the ask price) is called spread.
We can therefore see that A Forex Ask price is the price at which the market ( or forex broker) is willing to sell a specific Forex Trading currency pair in the online Forex market. This is the price at which you the trader will buy it . It is shown on the right of the Forex quote. For instance, in the currency pair EUR/USD quoted at 1.2342/47, the ask price us 1.2347. This tells you that you can buy one EUR for 1.2347 USD.
Now moving on to the the Bid price. This is the lowest price in the quotation of the currency pair. The bid price is the price at which you the trader will sell the currency which comes first in the abbreviation of the currency pair.
A Forex Trading Bid price is therefore price at which the market ( or forex broker) is willing to buy a particular currency pair in the Forex trading market. It is the price that you the trader of Forex can buy the base currency in the pair. Looking at the quote of a currency pair, the Forex bid price appears to the left of the currency quote. Take for instance, the EUR/USD pair is 1.2342/47, then the bid price is 1.2342. This means you can sell the EUR for 1.2342 USD.
Does this seem difficult? Let us take a bigger example to understand it better: Let us take that we have the currency pair of EUR/USD with the quotation of 1.3652/1.3655. This tells you that you can buy 1 euro for 1.3655 dollars and then sell 1 euro for 1.3652 dollars. The difference between these values in the quote(the bid price and the ask price) is called spread.
What is the Ask and Bid Price
Aucun commentaire:
Enregistrer un commentaire