Quote / currency rates

Forex quotes consist of the price of 2 prices, ie a lower price (Bid) and a higher price (Ask / Offer). Bid is the price you sell to forex broker (dealer) or the price at which forex broker (dealer) will buy from you. While Ask / Offer is the price you buy from forex broker (dealer) or the price at which forex brokers (dealers) want to sell to you. Bid is generally lower than Ask.
Bid and Ask price difference is the Spread. The smaller the spread dealers become more profitable forex trader.
Quote from forex looks like this:
forex quote
Quote namely EUR / USD Bid / Ask: 1.2293/96. Means that the selling price to your broker the purchase price of 1.2293 and 1.2296 the broker is. 1.2296-1.2293 spread is 3 points.
Example: You open BUY (Long) EUR / USD at 1.2296 price (Ask), then if Bid now shows the price of 1.2293, meaning you still lose at -3 pips. Because of this, every time you open positions will certainly take place minus a spread (ie for instance 3 for EUR / USD). To get the profit you have to wait until the price bid on the table more than the price UP 1.2296
Please note: When you open position Buy (Long), it means you open a position with the ask price, and then will be closed (close / liquid and including stop loss and profit target) using the bid price.
When you open a position Sell (Short), that means you open a position with the bid price, and then will be closed (close / liquid and including stop loss and profit target) using the ask price.
Position Open to Close (TP * / SL **) with Buy (Long) Bid Price Ask Price Sell (Short) Bid Price Ask Price
* TP = Take Profit ** SL = Stop Loss

Quote / currency rates 2011-01-31T16:21:00+07:00 Rating: 4.5 Diposkan Oleh: masterprofit