What is Bid,Ask dan Spread

Forex world is inseparable from the buy and sell (buy and sell). Each trader has the freedom to do any such action which he said was to make a profit. Buy also akin to the bid and is compared to short sell / offer.
Reading quotes is very easy. If we look at forex quote or price, usually always followed by the value of the bid and ask prices. Maybe some of you are just starting out in forex trading confused with the terms of this bid and ask.

In each pair, the price displayed is always followed by the value of the bid and ask prices. And if we open any position, the price offered is always followed by the value of the bid and ask anyway. So what the heck actually bid and ask it in forex trading?

Bid is the price that is given when we are going to buy (long transactions / buy) in a currency pair. While the ask is the opposite, namely that the price will be when we transact sales (short / sell) in a currency pair. Easy example:

GBP / USD at 1.6470 with a value of the bid and ask at 1.6473.

This is to inform you that if the purchase transaction, the price given is 1.6470. Whereas if we do sell transaction, the price given is 1.6473.

Well, the difference between bid and ask spread that is his name. In other words, forex spread is the difference did each currency pair when it traded in currency trading or foreign exchange (forex), to the position of selling and buying, which is determined by each Broker. So to say the amount of this spread to every broker is not always the same, although for the same currency pair. Forex traders, forex spreads are usually always looking for the smallest after finding reliable forex broker to invest as a forex trader.

Now we see that between the bid and ask is there within 3 pips (6473-6470 = 3). the distance between the bid and ask is what is called the SPREAD. Large spread of different in each pair, and for the same pair was given a spread can vary from one forex broker with other brokers. In addition, there are forex brokers who use the fixed spread, spread that does not change in any market condition. And some are using the system of floating spreads, where the spreads vary depending on market conditions.

Make sure you also pay attention to the magnitude spread of the forex broker you choose will be an additional consideration.

Typically, forex spread has been set by each broker and will not change unless the subsequent development of forex brokers feel the need to increase the spread. Although the spread is fixed or definite can be said, but the rules of each broker "is usually added" will increase the spread when there is a very strong fundamental issue affecting the market, where the rate of movement for the currency pair is very fast. For experienced traders, moment like this is a long-awaited moment, because not all the time can make a profit within a very short time, though to run out of capital is also very fast if done wrong in the open position.

When there is a change in spreads, for the forex trader who has made an open position at the beginning of this course is not a problem because the effect is not too large, unless the loss is in a position to spread the swelling is very painful. And for a trader who had come into the market, this spreads the swelling will be felt at all, especially coupled with the presence of a very small margin, or practically only able to resist movement under 100 points.

If you are someone who wants to be "professional traders", always doing the preparation when fundamental news will appear at least 15 or 30 minutes of the news will emerge, and begin to perform technical analysis as a supporter of fundamental analysis that will appear. Once the analysis is based on technical analysis is complete, just wait for the right moment to perform open position. If entered during fundamental news has not been revealed, it is usually spread forex still standard as set out previously.

One more is required when the upheaval of the market where the fundamental news has come down, it takes highly qualified internet connection in order to enter the market at that time. Since the number of forex traders who also perform open position at the same time, sometimes going delay in the open position, and of course this is very detrimental for a forex trader, forex spread because it could be covered already swollen and the desired point missed because of such delay.