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Username: ForexGuy Rating:  Asked to: Anton Luyten Date Created: 02 Oct 2015 |
| Category | 17 |
| Tag | Forex |
| Question | Please give the definition of bid and asked. |
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Hello Forex Guy, 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. |
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