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.
Other educational videos
-
03 Oct 08:30PM
![Walid Aboeldahab]()
Walid Aboeldahab - ArabicTrader Senior Market Analyst, Certified Technical Analyst CFTe.
Thursday 03 October 08:30 PM
Free online
Register now -
07 Oct 08:30PM
![Mohammed Salah]()
Mohammed Salah - Member of the ArabicTrader Forums team, professional financial market analyst and expert in trading financial markets for 10 years.
Monday 07 October 08:30 PM
Free online
Register now -
09 Oct 08:30PM
![Walid Aboeldahab]()
Walid Aboeldahab - ArabicTrader Senior Market Analyst, Certified Technical Analyst CFTe.
Wednesday 09 October 08:30 PM
Free online
Register now
