Bid - Ask Spreads in Forex trading
Understanding Bid and Ask Prices in Forex Trading
Ask Price: The price at which buy orders are executed.
Bid Price: The price at which sell orders are executed.
The ask price is slightly higher than the bid price. This difference is called the spread, which represents the profit margin for the entity executing the trade, such as a bank, brokerage firm, or currency exchange office.
This lesson explains these concepts in simple terms. You can view this lesson in the Forex School.
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