Why is the buy and sell price difference in forex

Why is the buy and sell price difference in forex

31/03/ · The Take Profit Price shown is also the potential SELL price. (Meaning the price to SELL back to the market). When we open a SELL position, it means we sell to the Market. Therefore, when we close the position, we must BUY it back from the Market. If we open a SELL position, we need to be aware of six main points in the Open Trade. The current rate is now showing the BUY blogger.comted Reading Time: 2 mins 02/03/ · The buy price is higher than the sell price, but the fact that the charts usually only show the sell side price can be the cause of confusion for traders who are not aware of blogger.comted Reading Time: 2 mins 18/08/ · When a trade is made in forex, it has two sides—someone is buying one currency in the pair, while another individual is selling the other

Why are 'buy' and 'sell' prices different?

It only takes a minute to sign up. Connect and share knowledge within a single location that is structured and easy to search. In the stock market, why is there a difference between the buy price and sell price of a stock? So why is there a difference? Since the bid price and ask price are different, no sale is made.

So a sale is finally made. Another discussion of this topic is shown on this post. This is called the Ask-Bid Spread. The difference varies based on the liquidly of the asset. The more liquid or the higher the volume of trades for the asset then the smaller the spread is. The spread goes to the broker to pay for some of the cost of the trade. My guess is that when there is a higher volume of shares being traded, brokers need to take less of a fee per share out of the transaction to cover their costs.

This makes the spread is smaller. This is essentially the difference in price between the highest price that a buyer is willing to pay for an asset and the lowest price for which a seller is willing to sell it.

The seller will get the bid price and the buyer will pay the ask and the broker keeps the spread. Sign up to join this community. The best answers are voted up and rise to the top. Stack Overflow for Teams — Collaborate and share knowledge with a private group. Create a free Team What is Teams?

Learn more. Why is the buy price different why is the buy and sell price difference in forex the sell price of a stock? Asked 10 years, 5 months ago. Active 10 years, 5 months ago, why is the buy and sell price difference in forex. Viewed 69k times. Improve this question. edited Apr 13 '17 at Community Bot 1. asked Apr 29 '11 at Victor Victor When you look at the buy and sell prices, those are offers that have not yet been accepted.

Add a comment. Active Oldest Votes. When there is a difference between the two no trading occurs. Still no sale. Improve this answer. answered Apr 29 '11 at Stainsor Stainsor 3, 2 2 gold badges 21 21 silver badges 33 33 bronze badges. edited Apr 29 '11 at Tim Santeford Tim Santeford 1 1 silver badge 6 6 bronze badges. But unless those two are equal, the deal will never be made And as a seller, how come I do not get to determine the price?

Well if its a open market order then the buyer will pay the ask regardless of the spread. You can determine a selling price by setting a limit order. You will get your ask price then provided the bid price rises to your limit, why is the buy and sell price difference in forex. But if you just sell with a market order then the market picks the bid-ask based on supply and demand. Featured on Meta. Unpinning the accepted answer from the top of the list of answers.

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This is essentially the difference in price between the highest price that a buyer is willing to pay for an asset and the lowest price for which a seller is willing to sell it. The seller will get the bid price and the buyer will pay the ask and the broker keeps the spread 31/03/ · The Take Profit Price shown is also the potential SELL price. (Meaning the price to SELL back to the market). When we open a SELL position, it means we sell to the Market. Therefore, when we close the position, we must BUY it back from the Market. If we open a SELL position, we need to be aware of six main points in the Open Trade. The current rate is now showing the BUY blogger.comted Reading Time: 2 mins 04/02/ · Knowing when to buy and sell forex depends on many factors, but there tends to be more volume when markets are volatile because of the associated higher blogger.comted Reading Time: 4 mins