Categorized | Forex Videos

2.2 Bid, ask and the spread in trading

We discuss the difference between the bid and the ask and guide you through an example of spreads. Remember that no matter which direction you trade into, you will always start with a debt that is equal to the spread. So, if the spread is 2 pips, you will start with a debt of 2 pips and you will also have to accumulate 2 pips in order to break even. We also discuss the pricing structure for currency pairs and what the prices actually mean. The first currency listed is the base currency and the second is its counterpart. Watch the full video for a full explanation.


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