Trader since In fact as a general rule you should always check the bid ask spread before entering a trade regardless of the current trading session. When there is a lot of liquidity in the market, the spread will be low, and when there is less liquidity in the market, the spread will be higher. It indicates the market liquidity, how easy or difficult it is for a seller to find a buyer willing to pay the price he requires. The difference between the bid and the asking price for a particular currency pair is called the forex spread or bid-ask spread. Hence if they are investing in this currency, they will usually keep the asking price higher. In some countries, the inflation rates are high, and the currency value is decreasing rapidly. Previous Post What is a Trading Strategy? The bid and ask price will also depend on the economy of the country, financial stability. You can unsubscribe at any time.īy continuing to use this website, you consent to the use of cookies in accordance with our Privacy Policy.
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