Bid/Ask definition
The Bid or the selling price is the exchange rate at which a currency is offered for sale. The Ask or buying price is the exchange rate at which a currency can be bought.
In the example above the EUR/USD pair (Euro vs. US dollar) is quoted at 1.1034/1.1037. In other words, the quote for the EUR/USD pair is 1.1034/1.1037, where 1.1034 is the Bid price and 1.1037 is the Ask price. Meaning if you wish to sell the quoted currency – in this case the Euro – then you would receive 1.1034 US Dollars per 1 Euro. On the other hand, if you were buying the quoted currency, then the quote tells you that to buy Euros for US dollars, you would need to pay 1.1037 dollars per 1 euro.
Related words
Base Currency ・ Balance of Payments ・ Bar Chart ・ Big Figure ・ Bretton Woods Agreement ・ Back office ・ Bonds ・ Broker・ BID / ASK・ Balanced Fund・ Balanced investment strategy・ Backpricing・ Backwardation・ Bear Spread・ Bear Vertical Spread・ Bozu・ Breakaway gap
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