About Lesson
- Long means you are buying the base currency and selling the quoted currency and going short means you are selling the base currency and buying the quoted currency.
- Majority of the time the bid is lower than the asking price.
- The bid price is the best available price the broker is willing to buy the base currency for in exchange for the quoted currency to sell to market.
- The ask price is the best price at which your broker will sell the base currency for in exchange for the quoted currency. This means the ask price is the best available price to purchase from the market.
- A “spread” is simply the difference between the bid and ask price.