Welcome to part 2 of "Understanding the Lingo"; this is the final part I promise. I've got about 4 more terms to explain and then you're ready to speak basic Forex language. The ladies love it... well, not so much but play along. Let's get into it.
The bid price is the market buying price; the rate at which the market is prepared to buy a specific currency pair in the Forex market. What this means is the trader can sell the base currency. Like in the quote GBP/USD 1.9622/15 the bid price would be 1.9622; this means you can sell 1 GBP for 1.9622 USD. Not too complex, really.
The ask price is basically the opposite of the bid price; it's the rate at which the market is prepared to sell a specific currency in the Forex market. This means, you guessed it, the price at which you can buy the base currency! Sometimes this is also called the offer price. Since examples are always nice let's say the quote is EUR/USD 1.5448/15, this means you can buy 1 EUR for 1.5448 USD.
Next up we have the spread; sounds tasty. Basically it's the difference between the bid and ask price. Typically when verbally referring to this they ditch some digits; like the USD/JPY rate may be 108.05/108.09 they would ditch the first three digits and quote it as "05/09". See man this stuff really isn't hard to understand.
Cross currency is literally any pair that doesn't involve the USD. These pairs typically have chaotic price behavior because the trader has basically initiated two USD trades. Huh? Hold on to your hat man, this is going to blow your mind. Say you initiated a buy of EUR/GBP. It's equal to buying a EUR/USD pair and selling a GBP/USD.
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