How to understand the bid or ask concept?

Question

Thomas · Accepted Answer

The bid (SELL) price is the price that traders can sell currency at, and the ask (BUY) price is the price that traders can buy currency at. This may seem confusing as it is only natural to think of “bid” in terms of buying so just remember the bid/ask terminology is from the broker’s perspective.Traders will always be looking to buy forex when the price is low and sell when the price rises; or sell forex in anticipation that the currency will depreciate and buy it back at a lower price in the future.

Dustin · Answer

A "bid and ask" (also called a "bid and offer") is a two-way price quotation that indicates the best possible price at which a security can be sold and bought at a given moment in time. A bid price is the highest price that a buyer is willing to pay for a share of stock or other security. The asking price represents the lowest price a seller is willing to accept for the same security. Whenever a buyer in the market is willing to pay the best offer available or willing to sell at the highest bid-there is a trade or transaction.As an implied cost of trading, bid and ask spreads are a concern for the average investor. If the current price quotation for ABC Corp. stock is $10.50 / $10.55, investor X, who wishes to acquire ABC shares at the current market price, would spend $10.55, while investor Y, who wishes to sell ABC shares at the current market price, would receive $10.50.

Vernon · Answer

Newcomers to the currency market may find it confusing. It is easiest to understand the bid rate and ask rate by remembering that these rates are quoted from the dealer's perspective, not you. The dealer is willing to bid Rs.67.27 and ask/offer Rs.67.33 for the base currency (USD in this case). The dealer will pay a maximum of Rs.67.27 to buy one USD from you and will sell you one USD if you spend a minimum of Rs. 67.33.

How to understand the bid or ask concept?

6 Answer

6 Answer

How to understand the bid or ask concept?

6 Answer

6 Answer

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