When traders want to place an order on the Forex market they should know the currency pair as well as the price of this pair. Forex market price of the currency pair is denoted by two symbols Ask and Bid, which have the specific digital notations.
The legend in the InstaSpot team!
Legend! You think that's bombastic rhetoric? But how should we call a man, who became the first Asian to win the junior world chess championship at 18 and who became the first Indian Grandmaster at 19? That was the start of a hard path to the World Champion title for Viswanathan Anand, the man who became a part of history of chess forever. Now one more legend in the InstaSpot team!
Borussia is one of the most titled football clubs in Germany, which has repeatedly proved to fans: the spirit of competition and leadership will certainly lead to success. Trade in the same way that sports professionals play the game: confidently and actively. Keep a "pass" from Borussia FC and be in the lead with InstaSpot!
When traders want to place an order on the Forex market they should know the currency pair as well as the price of this pair. Forex market price of the currency pair is denoted by two symbols Ask and Bid, which have the specific digital notations.
Ask price is the highest price in the pair’s quotation, at which a trader buys the currency standing first in the abbreviation of the currency pair. Consequently, a trader sells the currency standing second.
Bid price is the lowest price in the quotation of the currency pair, at which a trader sells the currency standing first in the abbreviation of the currency pair. Respectively, a trader buys the currency standing second.
Let’s consider an example:
We have the currency pair EUR/USD with the quotation 1.3652/1.3655. This means that you can buy 1 euro for 1.3655 dollars or to sell 1 euro for 1.3652 dollars. The difference between Bid price and Ask price is called spread. Spread is a payment for the opportunity to trade on the Forex market, so-called commission of the brokerage firm. Spreads are very small on the exchange market; they are ten or even hundred times smaller than the banks' spread. For the most part of the major currency pairs spreads amount to 3 points.
