Bid and Ask? Spread?

So you might go check your mt4 soon, or some of you is already using it, and always always that you can see your bid and ask prices in your market watch.

So the bid and ask and Spread are like a “family”  in any trading arena because  spread is just simply the difference between the ask and bid price. Bid price s also synonymous to buying price as to the ask price is the same with selling price.

In forex, this is what happens .. When you buy a currency, lets say EurJpy with a Bid price = 140.732 , Ask price = 140.761 , your spread is around 29piplets or 2.1pips. Now you enter your trade, you are eyeing on the buying price but will be given the selling price at the moment, and when the ask price hits your bid price, there! you are going to start profiting, it means you already paid for the spread.

Spread by the way is the amount we are paying to the broker as we trade, that will serve their commission. Basically , they already earn with our positions regardless of the what would happen next to our trade.

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