While talking about exchange rates- what is the meaning of bid and ask?

Answer 1

Bid and Offer (=Ask) rates are basically buying and selling rates. Exchange rates are based on the fact that a foreign currency is a commodity in other market and hence there will be two way quotes. The rate at which the currency is Offered and the rate at whcih the currency is sold. Bid rate means the price which the person quoting the bid is ready to pay for that currency

The ask rate on the other hand means the price at which the seller is willing to part with the foreign currency.

For example in Indian context if the quotation for USD is INRas 45.60 and 45.80 will mean the seller is ready to sell USD @Rs.45.80 and if USD is tendered to him he will pay Rs.45.60.

The former is bid rate and the later is ask rate.

Answer 2

Bid and Ask in Day Trading

The Bid is the price at which a broker will buy your current day trading position from you. The Ask is the price at which the broker will sell you the position you require. The gap between the bid and the ask depends on many and varied factors, such as how much liquidity the instrument has, how volatile the general day trading market is, the ratio of day trading buyers vs sellers and so on.

This is why prices you see will have 2 numbers which you can see on your day trading computer - for example the price of IBM might be quoted as 110 - 112. This means that if you want to day trade IBM and want to BUY a single share, it will cost you 112 dollars, but if you want to SELL a share, you will only get 110 dollars for it. In the morning papers, usually only 1 price is shown, and this is the MID price (the middle between the bid and ask). Think of it like exchanging foreign currency when you are abroad - when you go into a Cambio, they will give you only £60 for your $100, but if you want to sell them that £60 back, you will be lucky to get $95.

Day trading Spread betting companies make their living doing just this one trick, and have wider spreads between the bid and ask than ordinary brokers, in order to make up for the absence of commission charges. Note - the "Best Bid" for a stock is usually taken to mean the highest price that a day trader buyer is willing to pay for that stock at any particular point in time. The "Best Ask" is the lowest price that a day trader seller is willing to accept for a stock at that time.

A Bid is made up of a Buy Limit Order that has been put into the market. An Ask is made up of an open Sell Limit Order.


A price mechanism or market-based method is any of a wide variety of ways to match up offers and requests that market players bid and ask:

* a bid is an offer to pay a fixed amount that is held open for a period of time
* an ask is an offer to sell for a fixed amount that is held open for a period of time

If the terms "pay" and "sell" are understood very generally, then, a very broad range of applications and different market systems can be enabled this way. Internet dating for instance could be based on offers to talk for a period of time, accepted by those who are compensated not in money but in additional credits to keep using the system. Or, a political party could trade support for different measures in a platform, perhaps using allocation voting to "bid" a certain amount of support for a measure that a leader has "asked" them to support: if the measure has enough support in the party, the leader will proceed - a very explicit model of so-called "political capital".

The main advantage of such methods is that conditions are laid out in advance and transactions can proceed with no further permission or authorization from any participant. When any bid and ask pair are compatible, a transaction occurs, in most cases automatically.

Though there are many concerns about liquidating any given transaction, even in a conventional market, there are ideologies which hold that the risks are outweighed by the efficient rendezvous. In greenhouse gas emissions trading this is particularly non-controversial as the whole atmosphere of Earth can reasonably be seen as one uniform body affected almost equally by emissions anywhere on Earth. There are thus almost no local effects, and only a measurable and widely agreed climate change effect, of a greenhouse gas emission, justifying a "cap and trade" approach. Somewhat more controversially the approach was applied even earlier to sulphur dioxide emissions in the United States, and was quite successful in reducing overall smog output there.

Answer 3

On the exchange floor there are certified professional risk takers, stocks, currency .......commodities they are called specialist, they are always willing to buy or sell.

Asking is the price they are asking for selling the currency.

The buyer is the one who bids the price to buy the currency.

Buyer bids
Seller ask.

When this match, you have sale, that is the last price, at which transaction took place. It is actually transaction price in short call price.

Answer 4

No, not at all. Often times, guys may seem distant, but they could be contemplating how they think you are. If ask them if they're still there and they say something like "sorry got distracted," then it could show that they ARE interested but just thinking about you. If they say "sorry what were you talking about," then thats bad and it means they're not interested. Give him the benefit of the doubt. Also about not looking at you, even confident guys get nervous. It's natural.

Answer 5

i don't know

i maybe quoting the lowest rate which is best for and the exchanger by which both are benefited