Understanding Forex prices

The Spread

To better understand the concept of `Spread,’ you need to know the terms Bid and Ask. The price at which a trader is willing to sell the currency pair is called Bid. The ask is a price at which a buyer is willing to buy the currency pair. Ask is also known as the offer, while Bid is often termed as the selling price of a currency pair, which is always lower price in a quote. The difference between the Bid and ask is termed as a Spread. The spread is also termed as the cost of a trade, and Forex prices are displayed in the form of a Bid/Ask spread.

During a trade, market execution is promoting commission-based trading; otherwise, no additional broker commission is involved except the spread.

Related Articles
en_USEN_US