Forex Pip Values
Forex Bid / Ask Spread?
I understand why the difference between the bid and ask prices would make him lose a little seed to get into a position Long / trade … but would it not be beneficial for the bid price is less than the sale price if you are entering a short trade? because when you short, not looking for a lower value of the currency pair when it goes out of business? Or the supply / demand introduces reversed when short?
Hello, if you look at the price of the currency, you will see as follows: EUR / USD: 1.4328 (bid): 1.4330 (ask) Ask price Buy Always and always sold at the price of two times a day. So lets take Vendo Example: Say you buy a lot and sell it immediately. You Buy at 1.4330 (ASK) and Sell at 1.2328 (IDB). You loose 2 points or $ 20 per contract. Now let's look at the sale and purchase of immediate first: Sell at 1.4328 (IDB) and Buy at 1.4330 (Ask) Once again the loss than 2 pips or $ 20 per standard lot.
How To Start Trading The Forex Market? Part 5 of 8