Like any other trading price, the spread for a forex pair consists of a bid price at which you can sell (the lower end of the spread) and an offer price at which you can buy (the higher end of the spread). It is important to note, however, for each forex pair, which way round you are trading. When buying, the spread always reflects the price for buying the first currency of the forex pair with the second. So an offer price of 1.3000 for EUR/USD means that it will cost you $1.30 to buy €1. You would buy if you think that the price of the euro against the dollar is going to rise, that is, if you think you will later be able to sell your €1 for more than $1.30. When selling, the spread gives you the price for selling the first currency for the second. So a bid price of 1.3000 for EUR/USD means that you can sell €1 for $1.30. You would sell if you think that the price of the euro is going to fall against the dollar, so you can buy back your €1 for less than the $1.30 you originally paid for it.

http://pashoplocal.com/forex-millennium-review/

Instituto Superior de Filosofia Berthier (IFIBE) | Rua Senador Pinheiro, 350 - Bairro Vila Rodrigues - CEP 99070-220 - Passo Fundo, Rio Grande do Sul - Brasil | Esta obra está licenciado com uma Licença Creative Commons Atribuição 4.0 Internacional.

ISSN: 2526-5709