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Understand Currency Pairs in Forex

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Understand Currency Pairs in Forex

Introduction to Bid & Ask price:

When you are going to open a trade then absolutely you will buy and sell something.

Base currency in the currency pair / Quote currency of pair = Bid price / Ask price

The difference between the bid price and ask price of a currency pair is called spread.

For example, we are buying EUR/USD at 1.25551 and close the trade at 1.25537 sale price.

1.25551 – 1.25537 = 0.00016 (Spread) or 1.6 (pips)

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