FX Currency Pairs
All Forex trades include the simultaneous buying of one currency and selling of another, but FX currency pair itself can be considered as a separate component, an instrument that is bought or sold.
|EURSEK||Euro vs Swedish krona|
|USDNOK||US dollar vs Norwegian krone|
|USDSEK||US dollar vs Swedish krona|
|USDSGD||US dollar vs Singapore dollar|
The buy price, called the “BID”; and the sell price, called the “ASK” are two prices for currency in Forex market. The difference between them is the “spread». The spread is what Forex brokers use to make money on every trade placed through their network. The spread signifies the difference between what the market maker offers to buy from a trader, and what the takes to sell to a trader. The procedure of buying and selling of currencies in the foreign exchange market gives numerous opportunities to a trader to make great profits.
The Bid (buy price) distinguishes the needed quantity of quote in order to get one unit of the base currency. Equally, while selling the currency pair, you sell the base currency and receive the quote currency. The Ask (sell price) for the currency pair distinguishes how much you will get in the quote currency for selling one unit of base currency.