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Order Placement

Bid, Ask & Spread

As a Forex trader, you're probably already familiar with the Bid and Ask prices. But you might not be aware of their role in order placement. It is very important to use the correct price when opening or closing orders.

The Bid price is what you see on the MetaTrader charts. It is usually what we think of when we think of the “current price.” The Ask price is generally just a few pips above the Bid price. The difference between the Bid and the Ask is the the spread, which is the broker's commission for placing the order.

The Ask price is where we open buy orders, and close sell orders. The Bid price is where we open sell orders, and close buy orders. You'll need to indicate the correct price when opening a market order, or when closing an order at market, so remember the difference between the two.

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