The bid price is the best price at which we can buy a financial asset. It is the price that is seen when you analyse charts on trading platforms.
The bid price is the best price at which we can buy a financial asset.
It is the price that is seen when you analyse charts on trading platforms.
When operating in the financial markets, you are provided with the bid price as well as the ask price. The bid price is always less than the ask price, and the difference between the ask price and the bid price is what we call the spread, which is also the cost of executing a transaction in the market.
As an example, if a window on your trading platform quotes the OIL market at 42.10 / 42.15, then it means that the bid price is 42.10 and the ask price is 42.15.
The thing to remember when going long is that your trade will open at the ask price and close at the bid price.
On the other hand, if you go short on the market, your trade will open at the bid price and close at the ask price.
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