If you opens your Forex Trading account with a broker online but if you don't know what are Bid Prices and Ask Prices then you won't able to succeed in the Forex Trading game.To won in the Forex Trading game first you have to know clearly what are the Bid Prices and Ask prices and the Importance of these both prices.There is one more factor which is must to know and that is Spread this is also a compulsory factor which you have to know with the Bid/Ask prices in the Forex Trading.When you got to know about the Bid/Ask prices then no body will able to stop you by making a good amount of money in the Forex Trading market.
In the Forex Currency quotes the two things are listed with the currency pair one which comes first is the Bid Price and the other which comes second is the ask price both are related to each other but have the lot of difference between them.
So now i don't take your so much time lets get to the point what are the Bid Price, Ask Price and the spread in the Forex Trading.So below you find all the specific details about all these things, if you know about these prices then close this window there is nothing for you (Just Kidding) you also read the points maybe you get to know a thing which you already don't know.And if you don't know about these prices then you have to read the whole article because it gives you a lot of profit for lifetime.
What Are The Bid Prices.??
In the Forex Currency Pair quotes you will see two prices one is the Bid price and the other is Ask price.The price which comes first means the price which listed in the left side are the Bid prices.Bid price are those price in which the broker gives you the opportunity to sell your currency pair and they offers you a price because they want to buy the currency pair.
For Example:- If you have a Currency pair of GBP/USD and the Current ratio is 1.5693/1.5697, then the price 1.5693 is the Bid price and you will able to sell your currency pair of GBP/USD in the 1.5693 Bid price and the broker or market player will buy it in the same 1.5693 price listed in the currency quotes.
So the Bid price is the price in which you able to sell your currency pair and it comes always first left side in the currency quote.
What Are The Ask Prices.??
In the Forex Trading Currency Pair quotes you will see the two prices one is the Bid Price and the other one is Ask price.The Price in the Currency quote comes at the second position means the price always become at the right side is the Ask price.Ask price are those price in which the market player or the Broker will give you the opportunity to buy the Currency pair and they offers you the same price which running currently because they are willing to sell the currency pair.
You will know clearly with an example:-Think if you have a currency pair of GBP/USD and the current ratio of the currency pair is 1.5693/1.5697, then the price on the right side 1.5697 is the Ask price in which the Broker is willing to sell the currency pairs, and you have the opportunity to buy the currency pairs in this price of 1.5697.
You are totally free to select your desired price in which you want to buy or sell your currency pairs and all the currency pairs are known as Units in the Forex Trading market.The Bid & Ask prices fluctuates every second, so play carefully and make a good amount of Money.
What Are Spreads..??
Spreads are the difference between the Bid & ask prices.Let us assume the same Currency quote which is running in the article of GBP/USD and the price ratio of GBP/USD is 1.5693/1.5697 you will see there is a difference of 0.0003 which is known as 3 points in between the bid price of 1.5693 and in the Ask price of 1.5697.
The difference in currency pair's price is known as spread mostly the spread remains constant but many times it also fluctuates.
Now you are fully familiar with the Bid Price and Ask price now go login into your Forex Trading Account and start buying and selling Currency pairs (Bid/Ask currency pairs).
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