I’ve been trading for a while, but the bid and ask prices still confuse me sometimes.
I get the basic concept, but when I’m actually making trades, it’s not always clear which one to use or how they affect my profits.
Anyone else find this tricky? How do you handle it in your trades?
Been there, still figuring it out sometimes. Bid’s the price you get when selling, ask’s what you pay to buy.
The spread between them can really eat into profits on short trades. Learned that the hard way a few times.
Now I always check the spread before entering, especially during news releases when it can widen suddenly.
Bid’s what you sell for, ask’s what you buy at. Spread’s the diff. Watch it close on volatile pairs. Can eat into profits fast.
Bid: sell price. Ask: buy price.
Key points:
• Spread = ask - bid
• Wider spreads increase costs
• Use limit orders to control entry price
• Monitor spread changes during volatility
Bid and ask prices are simple once you get used to them. Bid is what you sell at, ask is what you buy at. The spread between them is the broker’s profit.
Here’s what matters: always factor the spread into your profit calculations. It’s a cost you pay on every trade. For short-term trades, wide spreads can eat up your profits fast.
I keep a sticky note on my monitor with common spreads for my usual pairs. Helps me spot when they’re wider than normal, like during news releases. If the spread looks off, I’ll wait for it to tighten before entering a trade.
Remember, you’re buying at ask and selling at bid. Get that backwards and you’re starting each trade at a loss.
Man, I feel you. Bid/ask confusion cost me big in my early days.
Last month, I misread the spread on GBP/JPY and entered at the wrong price. Wiped out half my daily profit.
Now I always double-check before clicking ‘buy’ or ‘sell’. It’s saved my ass more than once.