as the 'Spread'. The scope of a forex forex limited risk options trading spread"d by a broker or market maker tends to depend on a number of factors. The price he"s for the car is the bid price.
When you buy shares, you pay ask price, but when you sell shares, you get bid price. This is also the case when you see the price band of a currency pair in the forex market. There is always a rate at which the market will sell you a commodity while there is always another price at which the market or the broker is ready to buy the commodity from you. Reply With" Thanks :10 PM #10 Look bro this is the very basic of the forex trading, and there would be many other things as well that you will not know so you can google this thing and will you fine you will get. Each currency pair has a different spread each other. The foremost is the currency pair involved, since different currency pairs tend to have different average bid ask spreads. Reply With" Thanks The Following User Says Thank You to Dejavu For This Useful Post: KakiBesar 03:37 AM #8 There is a difference in both of these and any one can easily understand that this is buying price and the selling price and the. The bid price is the exchange rate at which the market maker will purchase the currency pair, while the ask price is the exchange rate at which they will sell the currency pair.
Blue-chip companies that constitute the Dow Jones Industrial Average may have a bid -ask spread of only a few. Compare and Discern the Clear Difference Between Any Similar Things. Bid and ask are terms specific to share market and forex market and reflect the prices at which sale / purchase of commodities, in these cases stocks and currencies, is made. The Forex bid and ask spread is the disparity between the purchase and the sale rates. Traders often choose foreign currency with a lower bid /ask spread, this is due to the fact that their money pair only for the currency and is not wasted on the bid /ask spread difference.
Reply With", thanks 05:28 PM #6 spread is that usually use to take for cost operational for broker. Bid, if you have some shares and go to share market to sell them, the bid price is the offer that a share broker makes to buy out the shares from you. The Forex bid and ask spread is the disparity between the purchase and the sale rates. It is as you said most members is the difference between the bid price and the ask price, or what is known as the spread. If you have any desire to take a plunge in the share market, it is very helpful to know the definitions of these two terms and also the difference between bid and ask price. One thing to remember is that when you are selling your stock you are entitled to bid prices, which always happen to be lower than the ask price (the price you want).
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