- Currency Pairs
- Currency Quotes
- Buying and Selling
- Pips
- Margin and Leverage
Currency Quotes
Each currency pair price has two parts: the bid and the ask. The bid price is always lower than the ask price, and the difference between the two is known as the "spread." The bid is where you're able to sell the pair (sell the base currency/buy the counter), and the ask is the price where you can buy the currency pair.
Most currency pairs are quoted out to five digits, with the last two serving as the market bid and ask that you can trade on. The first three digits are known as "the big figure" and represent the full currency quote.
Forex quotes are shortened so that the ask price is the last two digits of the quote.
Bid / Ask
This quote would be expanded to 1.8746 / 1.8751.
In this example, you would be able to sell the currency pair at 1.8746. Conversely, you would be able to buy the currency pair at 1.8751.
