Saturday, February 21, 2009

What does "bid/ask" mean?


All Forex quotes include a two-way price, the bid and ask. The bid is always lower than the ask price.

Bid Price
The price at which the market is willing to buy a currency. This is the price at which the trader may sell the base currency.

Ask Price
The price at which the market sells a currency. This means the trader can buy the base currency at this price.