ASK AND BUY (BUY)
When a trader wants to open a transaction on the Forex market In the forex market the price of a currency counter is indicated by two Ask and Bid symbols that have a certain digital notation.
The Selling Price is the highest price in the quotation of the pair; A trader buys a currency at this price and the selling price is the second.
The purchase price is the lowest price in the quote of a currency pair; traders sell currencies based on these prices which are first.
Let’s look at the following example:
We have a EUR / USD currency pair with a quote of 1.3652 / 1.3655. This means that you can buy 1 Euro for 1,3655 dollars or to sell 1 Euro for 1,3652 dollars. The difference between the Buy price and the Selling price is called the spread. Spread is a payment for the opportunity to trade on the forex market, also called the brokerage commission. Spread is very small on the exchange market; smaller spreads ten or even hundreds of times than spreads on banks. For most main groups, spreads are 3 points.