Are you a forex enthusiast? Do you like to do forex trading? Then it is very important for you to know about forex bid ask price. If you are a beginner, at first get information about the basic terminology. At the time of reading about forex terms, you will be acquainted with this term.

The market of foreign exchange is large which encompasses the whole world, its currencies and its trade. Millions of people are involved with this trading activity. That's because it is an extremely profitable business. If you can do forex trading correctly, you will make a huge profit.

However, you must be wondering which things should you keep in mind at the time of doing forex trading? Well, there are many things which you should consider at the time of doing trading activity and to become a smart trader. Take a few tips if you want to be successful.

  • You need to analyze and understand your financial goals in foreign exchange trading.
  • You should choose an experience and skilled broker to come out as a winner. Beginners generally do the mistake of choosing wrong brokers. If you choose an unreliable broker, that will create problem.
  • Create your plans and then stick to those plans. How much time can you dedicate for forex trading? Do you want to do it as a full-time job or a part-time job?
  • You should start trading with low leverage and small sums.
  • If you do not know what exactly you are doing, don't trade. You should not do trading until you feel confident.  

There are may be many questions rise in your mind such as how to place the bid I ask forex? How to understand the concept of bid ask price in forex? Which books should I read for learning bid ask in forex?

What is Forex Bid Ask Price?

Forex bid price is the maximum price which a buyer wants to pay for the security

Forex ask price means the minimum price which a buyer will accept for the security.

The ask price is generally higher than the bid price. Forex bid ask price or spread is the difference between forex bid and forex ask prices. Brokers take the profits who handle the transaction. Bid ask pride get affected by the liquidity of the security. Bid ask price's size is a measurement of the market's liquidity for the security. It also indicates the transaction costs.

Elements for Forex Bid Ask Price:

Forex Bid ask price mainly has 2 types of elements.

  1. Brokerage fees
  2. Bid offer spread


It is difficult for you to understand forex bid ask or spread if I provide an example. Take a look at it.

Suppose, on 15th July, 2015, EUR/USD bid price and ask price are 1.3240 USD per Euro and 1.3244 USD per Euro respectively. When a trader is looking to purchase Euros, he has to pay $1.3240 per Euro. On the other hand, when a trader is looking to sell Euros, he will receive $1.3240 USD per Euro. The bid ask price is $0.0004 and in this case, the percentage of bid ask price is 0.03%.

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