As price represents the price at which you can buy an asset, and as such will usually be higher than the market price. It is one of the prices often quoted in the buying and selling of financial assets. It is the opposite of the bid.
In forex trading, this is the price that you, the trader, may buy the base currency.
The bid price (the price at which you can sell an asset) is quoted as lower than the ask (or offer), and the difference between the two is known as the spread.
The difference between the bid and ask prices, or the spread, is a key indicator of the liquidity of the asset. In general, the smaller the spread, the better the liquidity.
Understanding Bid and Ask
The average investor contends with the bid and ask spread as an implied cost of trading. For example, if the current price quotation for the stock of ABC Corp. is $10.50 / $10.55, investor X, who is looking to buy A at the current market price, would pay $10.55, while investor Y, who wishes to sell ABC shares at the current market price, would receive $10.50.
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