Lesson 3: BID, ASK and SPREAD

Written by Forex Vote

Forex Tutorial - Introduction To Forex

Hits

All Forex quotes display two prices, the bid and the ask. 

BID: The price of the base currency that the dealer is willing to pay in exchange for the quote currency. In simple words, the bid is the price at which you (trader) will sell. 

ASK: the price of the base currency at which the dealer is willing to sell in exchange for the quote currency. In simple words, the ask is the price at which you will buy. 

SPREAD: the difference between the ask and the bid prices. In other words, it is the difference between the market maker's "selling" price (to its clients) and the price the market maker "buys" it from its clients. By the way, the BID is always lower than the ASK. The reason for this mystery is that the SPREAD (the difference between the bid and the ask prices) is how FOREX brokers get paid for their services without charging you with commissions or special fees.
Back to Top

Our Top Pick Broker

Banner

Best Forex Bonuses

 $30 Non Deposit 

InstaForex broker offers non-deposit bonus.

 100% upto $300!

Double your deposit with this great offer.

 Bonus upto $1,000

Great bonuses from eToro broker.

 $50 for Feedback

Write a feedback for ForexYard website and get free cash!

Free $20 No Deposit 

10PIPS is another broker with non-deposit bonus!

Forex Survey

How Experienced Are You?

Results

Who's Online

We have 14 guests online