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A two-way price quotation that indicates the best price at which a security can be sold and bought at a given point in time.The bid price represents the maximum price that a buyer or buyers are willing to pay for a security. The ask price represents the minimum price that a seller or sellers are willing to receive for the security. A trade or transaction occurs when the buyer and seller agree on a price for the security.
The difference between the bid and asked prices, or the spread, is a key indicator of the liquidity of the asset - generally speaking, the smaller the spread, the better the liquidity.
Also known as bid and ask, bid-ask or bid-offer.
A Bid is the price selected by a buyer to purchase a stock, while the Offer is the price at which the seller is offering to sell the stock.
The difference between Bid and Offer price for a currency can be explained as mentioned below
The bid is the price at which the market will buy a currency pair (before any commissions or fees).
The offer (or ask) is the price at which the market will sell the currency pair (before any commissions or fees).
Most market participants have no difficulty determining the "bid" from the "offer" when they are dealing in their domestic or home currency. However, it can be complicated when dealing with a currency pair that differs from your standard FX requirements, or if you trade in a currency that is not your home unit.
Bid refers to the price firm is offering to buy from you a specified currency. And offer price is the price firm is ready to sell the specified currency to you. Bid price is always lower than the offer price. Not only forex the rule applies in share market and commodity market likewise.
Is it not the Ask and Offer price for any trading of (forex) currency.? Thanks.
