Understanding Bid, Ask, and Spread
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When trading forex on platforms like GoDoCM, understanding the terms Bid, Ask, and Spread is crucial for making smart and profitable decisions.
What is the Bid Price?
The Bid is the price at which the market (or your broker) is willing to buy a currency pair. If you are selling, you will receive the bid price. For example, if EUR/USD has a bid of 1.1050, that means GoDoCM is willing to buy one euro for 1.1050 USD.
What is the Ask Price?
The Ask is the price at which the market (or your broker) is willing to sell a currency pair. If you are buying, you will pay the ask price. So if EUR/USD has an ask of 1.1053, that’s the price you’ll pay per euro.
What is the Spread?
The Spread is the difference between the ask and the bid prices. In our example, the spread is 1.1053 - 1.1050 = 0.0003 or 3 pips. This small difference is often how brokers like GoDoCM earn revenue without charging commissions.
Why It Matters:
Understanding the bid, ask, and spread helps you manage trading costs and choose the right moments to enter or exit the market. At GoDoCM, we offer competitive spreads, transparent pricing, and advanced tools to help you trade with confidence.