Why is bid and ask different? - page 2

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Fernando Carreiro:

Does it only happen when you have a particular EA or Indicator running on the chart, or does it also happen when the chart is absolutely clean?

I believe it may also happen when an Indicator or EA, takes to long to return from processing a tick event!

nope as you can see from my clean chart.

 

good explanation, thank you, the question is, how to  get the values of the ask/bid lines on chart in mql5？

Ashkan Hazegh Nikrou #:

Forex brokers will quote you two different prices for a currency pair: the  bid and  ask price.

The “ bid” is the price at which you can SELL the base currency.

The “ ask” is the price at which you can BUY the base currency.

The difference between these two prices is known as the  spread.

Also known as the “ bid/ask spread“.

The spread is how “no commission” brokers make their money.

This spread is the fee for providing  transaction immediacy. This is why the terms  “transaction cost” and “ bid-ask spread” are used interchangeably.

Instead of charging a separate fee for making a trade, the cost is built into the buy and sell price of the currency pair you want to trade.

From a business standpoint, this makes sense. The broker provides a service and has to make money somehow.

  • They make money by selling the currency to you for  more than they paid to buy it.
  • And they also make money by buying the currency from you for  less than they will receive when they sell it.
  • This difference is called the  spread.
 
William Roeder #:

When they are equal, a trade between the two parties occurs. Then they are no longer equal.

If I want to sell you my car for $10K, but you only want to buy it for $9K, guess what, nothing happens.

Wait,can the spread be 0?

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