Many trades are still confusing with Bid & Ask price shown in Market Watch Window in Meta Trader 4. Although it is some confusing but east to understand it. Every trade must know and understand it before start trading. Let try to understand it…Before giving its details, one point should be noted that some trader/broker trades in single currency (USD or GBP etc), whereas almost trades/brokers trades in Currency Cross-pairs e.g. EUR/USD etc.
ASK PRICE: This is highest price of the currency pair or single currency.
(a) In single currency, it is SELL price of the corresponding currency.
(a) In single currency, it is SELL price of the corresponding currency.
(b) In cross currency paid, on ASK price we sell second currency in pair and BUY first currency in pair. for example EUR/USD has price Bid price1.4502 & Ask price 1.4505, here we sell USD and Buy EUR on this price on 1.4505.
BID PRICE: This is lowest price of the currency pair or single currency.
(a) In single currency, it is BUY price of the corresponding currency.
(b) In cross currency paid, on BID price we BUY first currency and SELL first currency in pair. for example EUR/USD has price Bid price1.4502 & Ask price 1.4505, here we sell EUR and Buy USD on this price on 1.4503.