Chart Pricing Options in forex trading

Forex charts presents with multiple display options at different prices. Prices are usually displayed along with asking price, the bid price or even with average price. The choice that you make may depend on your confusion, or the direction in which you decide to trade.

Asking price

This is the price based on which the currency pair is being sold. If you want to trade short term, the starting price is the value with which the order is filled up with.

Bid price

The bid price deals with the price on which the currency pair can be owned to go along. If you’re going long, the order will be executed at the bid price.

Average price

Average price places itself between bids and ask prices. Average price is not a price that you can trade with, but is another fine way to exhibit the price of the card since it is not much biased towards the buyer or seller. It will definitely give you a balanced frame of price action.

Spread

Spread refers to the difference between ask price and bid price. The spread focuses itself on how forex brokers makes money by avoiding the charge to the Commission. When we go theoretically, a trader can place a sell order for a pair of currencies and forex brokers can match this order with another order already presented by other traders for same pair. Seller will then pay the asking price, which will later offer to pay the bid price and the dealer will keep the difference in a moderate range.