Forex Education Center/ Part 28 / FOREX FOR BEGINNERS COURSE / Lesson 9. Bid Ask Forex Prices

Thank You For Your Support and For Honoring Me With Your Up Vote...

So as you see..
Here you can learn how to trade the Forex Market for free.
Just pure learning! It will be of great fun.
The material is all created by myself and not copied from anywhere.
There is a lot yet to come since there is a lot that you need to learn, and there is a lot that I need to share with you!
So please just be patient – it will be worth it.
You can judge by yourself the quality of information that I will be giving you. So just go now and start learning!

Welcome to the Forex for Beginners course.
As a reminder the course is aimed for complete beginners.
I tried to keep the lessons short and to the point giving out clear examples and videos where required.

Lesson 9. Bid Ask Forex Prices:
In the Forex Market actually there are two price quotes – the bid and the ask prices.
What is the difference between them?
Why we have two prices?

bid.png

When trading you will actually find two prices per currency pair – the bid and the ask. Of course they will be displayed in 4 or 5 digits depending on your broker.

Lets explain what they mean which can be a bit confusing for some people, and then I tell you how I remember them.

The Bid price – Sell
The Bid is the price a seller pays for in any currency pair.

The Ask Price – Buy
The ask is the price a buyer pays for in any currency pair.

A price quotation in Forex means the display of Bid / Ask prices.

For example EUR/USD can be 1.2874 / 1.2876.

The bid price is 1.2874 while the Ask price is 1.2876.

Of course the prices change nearly every second!

How we can remember these confusing words?

Assuming that you want to sell the currency,
you take the Bid price.

So the price at which you enter the trade will be the Bid price.

If you want to buy the currency, you take the Ask price.

So the price at which you enter the trade will be the Ask price.

Why the prices are difference?

Why the discrepancy between the Bid / Ask price?

That is called the spread – the broker profit!

We will explain that spread in the next lesson!

Every comment, every upvote, every support is really appreciated.
Thanks For Reading,
@lordoftruth
Samer

Below you can find the list with all the posts of Forex Education Center:

 

Part 01 / Live Vs. Demo Trading Accounts

Part 02 / Slippage

Part 03 / ECN Market

Part 04 / What Makes a Successful Price ActionTrader 

Part 05 / The Manual of the Forex Art of War

Part 06 / The Don’ts when you Compare Forex Brokers

Part 07 / What is behind Currency Pair Trading

Part 08 / Banks: Beacons of Fraud

Part 09 / Win With CFD’s

Part 10 / Fight and Win the Bulls and Bears

Part 11 / How to Spot a Forex Trading Fraud

Part 12 /  Become a Master with News Trading

Part 13 / The Forex Risk Management State of Mind

Part 14 / Top 10 Forex Trading Tips for Beginners – The Road to Success

Part 15 / Trader’s Strategy Checklist

Part 16 / E Currency Trading

Part 17 / E CURRENCY TRADING MAP

Part 18 / FOREX TRADING TUTORIALS

Part 19 / FOREX TRADING COURSES

Part 20 / FOREX FOR BEGINNERS COURSE / Lesson 1. Trading Currency Pairs

Part 21 / FOREX FOR BEGINNERS COURSE / Lesson 2. What is scalping

Part 22 / FOREX FOR BEGINNERS COURSE / Lesson 3. Intra Day Trading

Part 23 / FOREX FOR BEGINNERS COURSE / Lesson 4. End of Day Trading

Part 24 / FOREX FOR BEGINNERS COURSE / Lesson 5. Traders Psychology

Part 25 / FOREX FOR BEGINNERS COURSE / Lesson 6. Best Trading Hours

Part 26 / FOREX FOR BEGINNERS COURSE / Lesson 7. How to interpret Prices of 

Part 27 / FOREX FOR BEGINNERS COURSE / Lesson 8. Forex Pip

H2
H3
H4
3 columns
2 columns
1 column
Join the conversation now