At FOREX there are two way price quotations. The bid price represents the maximum price that a buyer or buyers are willing to pay for a security. The ask price represents the minimum price that a seller or sellers are willing to receive for the security. Which price is going to be used depends on whether it is a buy or sell operation.
Bid price: The purchase cost of one
currency pair.
Ask price: The sale cost of one currency pair.
Example:
|
CURRENCY |
ASK |
BID |
|
EURUSD |
1.12355 |
1.12350 |
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