Spreads: Difference between the buy and sell prices

The Pipspread

A spread or pipspread is the difference between the bid price and the ask price. Most online forex brokers utilize spread-based trading platforms for individual traders. Look at the spread as the compensation the broker receives for being the market-maker and executing your trade.

Spreads vary from broker to broker and by currency pairs at each broker as well. Generally, the more liquid the currency pair, the narrower the spread; the less liquid the currency pair, the wider the spread. This is especially the case for some of the less-traded crosses.

Traders prefer tight spreads to most of the major currency pairs.

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via Spreads: Difference between the buy and sell prices

Bid and Ask Price: Determine which is the BUY and SELL price

Bid (Sell) Ask (Buy)


When you’re in front of your screen and looking at an online forex broker’s trading platform, you’ll see two prices for each currency pair. The price on the left-hand side is called the bid and the price on the right-hand side is called the ask.

The “bid” is the price at which you can sell the base currency. The “ask” is the price at which you can buy the base currency.

Some brokers display the prices above and below each other, with the bid on the bottom and the ask on top. The easy way to tell the difference is that the bid price is always lower than the ask price.

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via Bid and Ask Price: Determine which is the BUY and SELL price

Who Trades the FOREX Market?

(Note: this is a Copy paste content on AskMarioSingh.com)


Who Trades the FOREX Market?
 by Mario Singh
  
Central Banks and Governments
Policies that are implemented by governments and central banks can play a major role in the Forex market. Central banks can play an important part in controlling the country’s money supply to insure financial stability. Things that they do;

1. Manage Inflation
2. Control Interest Rates
3. Regulate Money Supply

Commercial Banks
A large part of Forex turnover is from banks. Large banks can literally trade billions of dollars daily. This can take the form of a service to their customers or they themselves speculate on the Forex market.

Hedge Funds
As we know the Forex market can be extremely liquid which is why it can be desirable to trade. Hedge Funds have increasingly allocated portions of their portfolios to speculate on the Forex market. Another advantage Hedge Funds utlilise is a much higher degree of leverage than would typically be found in the equity markets.

Corporate Businesses
The Forex market mainstay is that of international trade. Many companies have to import or export goods to different countries all around the world. Payment for these goods and services may be made and received in different currencies. Many billions of dollars are exchanged daily to facilitate trade. The timing of those transactions can dramatically affect a company’s balance sheet.

Man on the street
Although you may not think of it, the man on the street also plays a part in today’s Forex world. Every time he goes on a holiday overseas, he normally need to purchase that country’s currency and again change it back into his own currency once he returns. Unwittingly, he is in fact trading currencies.
He may also purchase goods and services whilst overseas and his credit card company has to convert those sales back into his base currency in order to charge him.

Speculators and Investors
Both will have their reason for believing a particular currency will perform better or worse as the case may be and will buy or sell accordingly. They may decide that the Euro will appreciate against the US Dollar and take what is called a long position in Euro. If the Euro does in fact gain ground against the US Dollar, they will have made a profit.

 Read it more at AskMarioSingh.com

FOREX Market Profits: Understand the principle of buy low and sell high

Profiting from the FOREX Market

The traders profit by simply applying the principle of buy low and sell high! The profit potential comes from the fluctuations (changes) in the currency exchange market. Unlike the stock market, where share are purchased, Forex trading does not require physical purchase of the currencies, but rather involves contracts for amount and exchange rate of currency pairs.

The advantageous thing about the Forex market is that regular daily fluctuations-in the regular currency exchange markets, often around 1%-are multiplied by 100!

Click the image to enlarge

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via FOREX Market Profits: Understand the principle of buy low and sell high

Mario Singh - International Forex Expert

MARIO SINGH
Asia's #1 Forex Coach
CNBC-featured Forex Expert  

CLEANER TO CNBC IN 3½ YEARS - Using the Forex trading methods he now teaches, Mario Singh went from cleaner to successful trader featured on 35 times on CNBC in only 3½ years!

His unique ability to keep Forex simple has drawn thousands of people from all over the world to learn his strategies. Known as a brilliant and intense communicator, his entertaining style keeps his audiences spellbound.

Regarded worldwide as a renowned Forex trader and international Forex expert, Mario has been featured more than 35 times on CNBC, each time in front of over 350 million viewers worldwide. He is also one of the rare individuals in the trading world who has appeared on all of CNBCs major shows, like “Squawk Box”, “Capital Connection” and “Worldwide Exchange”.

With his deep understanding of Global Finance and Market Dynamics, Mario writes regularly for national and regional publications, like “Smart Investor” and “Your Trading Edge”. His recent article “Currency Wars” has received the highest level of praise and recognition from many industry peers, including the author of “Trading for a Living” - Dr Alexander Elder.

He also pens a weekly Forex column for one of Singapore’s national newspapers called “My Paper”. With thought-provoking content and deadly-accurate Trade Calls, Mario’s column is read by half-a-million business executives all over the country.

Interestingly, Mario first started on Forex trading when he bumped into a friend who was trading from his laptop in a coffee shop. The idea that all one needs is a laptop and internet connection to earn money from Forex captivated Mario, who immediately jumped in with both feet.

His first Forex trade, however, was a disaster, and Mario blew his first $3,000 account in 6 days. Down and dejected, it was this low moment of his life when he was reminded of the words of a successful Chinese businessman, “In life, there are no successful careers, only successful people”.

Steeling himself from this painful setback, Mario made the decision to master Forex trading. He began seeking world-renowned Forex experts to come under their mentorship, which dramatically cut short his learning curve and skyrocketed his trading results.

Within just 3½ years, Mario became a successful Forex trader featured on CNBC.

Today, as Founder and Chief Forex Coach at FX1 Academy, Mario Singh has touched the lives of over 20,000 people all over Asia on his methods to become consistently profitable in Forex trading, helping them move closer to their financial goals.

As a world-respected Forex educator, Mario Singh has even been invited to train institutional traders and bankers from Julius Baer - the third largest Swiss bank in the world with assets under management of CHF 340 billion, and ICBC - one of the largest commercial banks in the world with a market capitalization of USD 269 billion. OCBC - recently named as the World’s Strongest Bank - have also invited Mario to speak with their traders and clients.

Mario has a big vision, to help create one million enlightened millionaires all over the world through Forex Trading by the Year 2020.

Are You Next?

Learn more about Coach Mario Singh at http://mariosingh.com/

Lost in the Forex wilderness? Help is at hand.

Whether you’re a newbie or an experienced Forex trader, there is always going to be new information and strategies that can make or break your trading experience. The difficult question is, where do you go to learn these new techniques and get the support you need to trade successfully?


There are plenty of books, online guides, websites and blogs that each have their own theories and advice on Forex. The main problem with these resources is that they are usually only a one-way conversation, meaning that if you have a question you may have to wait for a reply if you even receive one at all!


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