Bid/Ask spread
For any quotation in Forex there should be an Ask/Bid value. Anyone that will buy or sell a currency will have to know the Ask/bid quote at that point in time.

The ask price is the lowest price at which the seller is willing to sell a currency and the buyer can buy the currency.

The bid is the price at which the investor is willing to buy a currency and the traders can sell a currency.

The Bid price is written in the left hand side. The Ask price is written in the right hand side.

The difference between the bid price and the ask price is known as the spread expressed in PIP units.

Consider an example of the EUR/USD pair where the ask price is 1.2633 and the bid price is 1.2630.  The difference between the two gives 3 PIPS, which means you are paying 3 pips to get the EUR with USD.

 
 
< Prev   Next >
[ Back ]