Aone Broker https://AoneBroker.com/ Online Forex & CFD Trading Platform Tue, 01 Aug 2023 16:22:25 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.4 https://AoneBroker.com/wp-content/uploads/2023/07/LOGO-SYMBOL-BLACK-150x150.png Aone Broker https://AoneBroker.com/ 32 32 News Post number three https://AoneBroker.com/news-updates/news-post-number-three/ https://AoneBroker.com/news-updates/news-post-number-three/#respond Tue, 01 Aug 2023 16:22:24 +0000 https://AoneBroker.com/?p=1240 Buying and selling is trading at its most fundamental. It determines your profit, and the price of an asset at any given time. As we covered in the Introduction to financial markets course, the number of buyers (or bulls) versus the number of sellers (or bears) in a market at a given time will directly …

News Post number three Read More »

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]]> Buying and selling is trading at its most fundamental. It determines your profit, and the price of an asset at any given time.

As we covered in the Introduction to financial markets course, the number of buyers (or bulls) versus the number of sellers (or bears) in a market at a given time will directly impact its price.

If lots of people are trying to sell an asset, then supply will outstrip demand, and its price will fall. If most traders are trying to buy, on the other hand, demand exceeds supply, and its price will rise.

But buying and selling isn’t just how prices are set – it’s also an essential part of everyday dealing.

  • Buying and selling in trading
  • Bid and ask prices
  • What is the spread?

Buying and selling in trading

The fundamental principle behind any trade is to make a profit, which is determined by the difference between your opening and closing price.

Let’s say you decide to buy USD/CAD, which is currently at 1.2779.

USD/CAD then rises to 1.2979, meaning the US dollar has strengthened in value against the Canadian dollar. Your profit or loss is based on how much USD/CAD moved: in this case, 200 points. If you’d bought 10,000 USD/CAD, you’d make a $200 profit.

However, if USD/CAD fell 200 points, you would lose $200 from the trade.

FXUS-SC9-BuyingAndSelling1

Bid and ask prices
Whenever you view a financial market, you’ll see two prices listed. The price on the left is the bid and the price on the right is the ask (sometimes referred to as the offer).

When you sell, you trade at the bid
When you buy, you trade at the ask
FXUS-SC9-BidAndAsk1

The bid will always be lower than the current market price, while the offer will always be higher.

What is the spread?
The spread is the difference between the bid and the ask prices, and is an important thing to when calculating your profit or loss from a trade.

Let’s use another example. When EUR/USD is at 1.1259, it might have a bid of 1.1257 and an ask of 1.1260. So, to buy the EUR/USD, you would open at 1.1260.

You would need EUR/USD bid price to move above 1.1261 before you can earn any profit from your trade. If EUR/USD moves up 2 pips to 1.1261, but its bid is 1.1259, then you would still sell at zero profit or loss.

The post News Post number three appeared first on Aone Broker.

]]> https://AoneBroker.com/news-updates/news-post-number-three/feed/ 0 News Post number two https://AoneBroker.com/news-updates/news-post-number-two/ https://AoneBroker.com/news-updates/news-post-number-two/#respond Tue, 01 Aug 2023 16:21:42 +0000 https://AoneBroker.com/?p=1238 Buying and selling is trading at its most fundamental. It determines your profit, and the price of an asset at any given time. As we covered in the Introduction to financial markets course, the number of buyers (or bulls) versus the number of sellers (or bears) in a market at a given time will directly …

News Post number two Read More »

The post News Post number two appeared first on Aone Broker.

]]> Buying and selling is trading at its most fundamental. It determines your profit, and the price of an asset at any given time.

As we covered in the Introduction to financial markets course, the number of buyers (or bulls) versus the number of sellers (or bears) in a market at a given time will directly impact its price.

If lots of people are trying to sell an asset, then supply will outstrip demand, and its price will fall. If most traders are trying to buy, on the other hand, demand exceeds supply, and its price will rise.

But buying and selling isn’t just how prices are set – it’s also an essential part of everyday dealing.

  • Buying and selling in trading
  • Bid and ask prices
  • What is the spread?

Buying and selling in trading

The fundamental principle behind any trade is to make a profit, which is determined by the difference between your opening and closing price.

Let’s say you decide to buy USD/CAD, which is currently at 1.2779.

USD/CAD then rises to 1.2979, meaning the US dollar has strengthened in value against the Canadian dollar. Your profit or loss is based on how much USD/CAD moved: in this case, 200 points. If you’d bought 10,000 USD/CAD, you’d make a $200 profit.

However, if USD/CAD fell 200 points, you would lose $200 from the trade.

FXUS-SC9-BuyingAndSelling1

Bid and ask prices
Whenever you view a financial market, you’ll see two prices listed. The price on the left is the bid and the price on the right is the ask (sometimes referred to as the offer).

When you sell, you trade at the bid
When you buy, you trade at the ask
FXUS-SC9-BidAndAsk1

The bid will always be lower than the current market price, while the offer will always be higher.

What is the spread?
The spread is the difference between the bid and the ask prices, and is an important thing to when calculating your profit or loss from a trade.

Let’s use another example. When EUR/USD is at 1.1259, it might have a bid of 1.1257 and an ask of 1.1260. So, to buy the EUR/USD, you would open at 1.1260.

You would need EUR/USD bid price to move above 1.1261 before you can earn any profit from your trade. If EUR/USD moves up 2 pips to 1.1261, but its bid is 1.1259, then you would still sell at zero profit or loss.

The post News Post number two appeared first on Aone Broker.

]]> https://AoneBroker.com/news-updates/news-post-number-two/feed/ 0 News Post number one https://AoneBroker.com/news-updates/news-post-number-one/ https://AoneBroker.com/news-updates/news-post-number-one/#respond Tue, 01 Aug 2023 15:48:30 +0000 https://AoneBroker.com/?p=1231 Buying and selling is trading at its most fundamental. It determines your profit, and the price of an asset at any given time. As we covered in the Introduction to financial markets course, the number of buyers (or bulls) versus the number of sellers (or bears) in a market at a given time will directly …

News Post number one Read More »

The post News Post number one appeared first on Aone Broker.

]]> Buying and selling is trading at its most fundamental. It determines your profit, and the price of an asset at any given time.

As we covered in the Introduction to financial markets course, the number of buyers (or bulls) versus the number of sellers (or bears) in a market at a given time will directly impact its price.

If lots of people are trying to sell an asset, then supply will outstrip demand, and its price will fall. If most traders are trying to buy, on the other hand, demand exceeds supply, and its price will rise.

But buying and selling isn’t just how prices are set – it’s also an essential part of everyday dealing.

  • Buying and selling in trading
  • Bid and ask prices
  • What is the spread?

Buying and selling in trading

The fundamental principle behind any trade is to make a profit, which is determined by the difference between your opening and closing price.

Let’s say you decide to buy USD/CAD, which is currently at 1.2779.

USD/CAD then rises to 1.2979, meaning the US dollar has strengthened in value against the Canadian dollar. Your profit or loss is based on how much USD/CAD moved: in this case, 200 points. If you’d bought 10,000 USD/CAD, you’d make a $200 profit.

However, if USD/CAD fell 200 points, you would lose $200 from the trade.

FXUS-SC9-BuyingAndSelling1

Bid and ask prices
Whenever you view a financial market, you’ll see two prices listed. The price on the left is the bid and the price on the right is the ask (sometimes referred to as the offer).

When you sell, you trade at the bid
When you buy, you trade at the ask
FXUS-SC9-BidAndAsk1

The bid will always be lower than the current market price, while the offer will always be higher.

What is the spread?
The spread is the difference between the bid and the ask prices, and is an important thing to when calculating your profit or loss from a trade.

Let’s use another example. When EUR/USD is at 1.1259, it might have a bid of 1.1257 and an ask of 1.1260. So, to buy the EUR/USD, you would open at 1.1260.

You would need EUR/USD bid price to move above 1.1261 before you can earn any profit from your trade. If EUR/USD moves up 2 pips to 1.1261, but its bid is 1.1259, then you would still sell at zero profit or loss.

The post News Post number one appeared first on Aone Broker.

]]> https://AoneBroker.com/news-updates/news-post-number-one/feed/ 0 Non-farm payrolls (NFP) https://AoneBroker.com/academy/intermediate/non-farm-payrolls-nfp/ https://AoneBroker.com/academy/intermediate/non-farm-payrolls-nfp/#respond Tue, 01 Aug 2023 15:19:20 +0000 https://AoneBroker.com/?p=1190 Buying and selling is trading at its most fundamental. It determines your profit, and the price of an asset at any given time. As we covered in the Introduction to financial markets course, the number of buyers (or bulls) versus the number of sellers (or bears) in a market at a given time will directly …

Non-farm payrolls (NFP) Read More »

The post Non-farm payrolls (NFP) appeared first on Aone Broker.

]]> Buying and selling is trading at its most fundamental. It determines your profit, and the price of an asset at any given time.

As we covered in the Introduction to financial markets course, the number of buyers (or bulls) versus the number of sellers (or bears) in a market at a given time will directly impact its price.

If lots of people are trying to sell an asset, then supply will outstrip demand, and its price will fall. If most traders are trying to buy, on the other hand, demand exceeds supply, and its price will rise.

But buying and selling isn’t just how prices are set – it’s also an essential part of everyday dealing.

  • Buying and selling in trading
  • Bid and ask prices
  • What is the spread?

Buying and selling in trading

The fundamental principle behind any trade is to make a profit, which is determined by the difference between your opening and closing price.

Let’s say you decide to buy USD/CAD, which is currently at 1.2779.

USD/CAD then rises to 1.2979, meaning the US dollar has strengthened in value against the Canadian dollar. Your profit or loss is based on how much USD/CAD moved: in this case, 200 points. If you’d bought 10,000 USD/CAD, you’d make a $200 profit.

However, if USD/CAD fell 200 points, you would lose $200 from the trade.

FXUS-SC9-BuyingAndSelling1

Bid and ask prices
Whenever you view a financial market, you’ll see two prices listed. The price on the left is the bid and the price on the right is the ask (sometimes referred to as the offer).

When you sell, you trade at the bid
When you buy, you trade at the ask
FXUS-SC9-BidAndAsk1

The bid will always be lower than the current market price, while the offer will always be higher.

What is the spread?
The spread is the difference between the bid and the ask prices, and is an important thing to when calculating your profit or loss from a trade.

Let’s use another example. When EUR/USD is at 1.1259, it might have a bid of 1.1257 and an ask of 1.1260. So, to buy the EUR/USD, you would open at 1.1260.

You would need EUR/USD bid price to move above 1.1261 before you can earn any profit from your trade. If EUR/USD moves up 2 pips to 1.1261, but its bid is 1.1259, then you would still sell at zero profit or loss.

The post Non-farm payrolls (NFP) appeared first on Aone Broker.

]]> https://AoneBroker.com/academy/intermediate/non-farm-payrolls-nfp/feed/ 0 Gross domestic product (GDP) https://AoneBroker.com/academy/intermediate/gross-domestic-product-gdp/ https://AoneBroker.com/academy/intermediate/gross-domestic-product-gdp/#respond Tue, 01 Aug 2023 15:18:58 +0000 https://AoneBroker.com/?p=1188 Buying and selling is trading at its most fundamental. It determines your profit, and the price of an asset at any given time. As we covered in the Introduction to financial markets course, the number of buyers (or bulls) versus the number of sellers (or bears) in a market at a given time will directly …

Gross domestic product (GDP) Read More »

The post Gross domestic product (GDP) appeared first on Aone Broker.

]]> Buying and selling is trading at its most fundamental. It determines your profit, and the price of an asset at any given time.

As we covered in the Introduction to financial markets course, the number of buyers (or bulls) versus the number of sellers (or bears) in a market at a given time will directly impact its price.

If lots of people are trying to sell an asset, then supply will outstrip demand, and its price will fall. If most traders are trying to buy, on the other hand, demand exceeds supply, and its price will rise.

But buying and selling isn’t just how prices are set – it’s also an essential part of everyday dealing.

  • Buying and selling in trading
  • Bid and ask prices
  • What is the spread?

Buying and selling in trading

The fundamental principle behind any trade is to make a profit, which is determined by the difference between your opening and closing price.

Let’s say you decide to buy USD/CAD, which is currently at 1.2779.

USD/CAD then rises to 1.2979, meaning the US dollar has strengthened in value against the Canadian dollar. Your profit or loss is based on how much USD/CAD moved: in this case, 200 points. If you’d bought 10,000 USD/CAD, you’d make a $200 profit.

However, if USD/CAD fell 200 points, you would lose $200 from the trade.

FXUS-SC9-BuyingAndSelling1

Bid and ask prices
Whenever you view a financial market, you’ll see two prices listed. The price on the left is the bid and the price on the right is the ask (sometimes referred to as the offer).

When you sell, you trade at the bid
When you buy, you trade at the ask
FXUS-SC9-BidAndAsk1

The bid will always be lower than the current market price, while the offer will always be higher.

What is the spread?
The spread is the difference between the bid and the ask prices, and is an important thing to when calculating your profit or loss from a trade.

Let’s use another example. When EUR/USD is at 1.1259, it might have a bid of 1.1257 and an ask of 1.1260. So, to buy the EUR/USD, you would open at 1.1260.

You would need EUR/USD bid price to move above 1.1261 before you can earn any profit from your trade. If EUR/USD moves up 2 pips to 1.1261, but its bid is 1.1259, then you would still sell at zero profit or loss.

The post Gross domestic product (GDP) appeared first on Aone Broker.

]]> https://AoneBroker.com/academy/intermediate/gross-domestic-product-gdp/feed/ 0 Inflation and CPI https://AoneBroker.com/academy/intermediate/inflation-and-cpi/ https://AoneBroker.com/academy/intermediate/inflation-and-cpi/#respond Tue, 01 Aug 2023 15:18:35 +0000 https://AoneBroker.com/?p=1186 Buying and selling is trading at its most fundamental. It determines your profit, and the price of an asset at any given time. As we covered in the Introduction to financial markets course, the number of buyers (or bulls) versus the number of sellers (or bears) in a market at a given time will directly …

Inflation and CPI Read More »

The post Inflation and CPI appeared first on Aone Broker.

]]> Buying and selling is trading at its most fundamental. It determines your profit, and the price of an asset at any given time.

As we covered in the Introduction to financial markets course, the number of buyers (or bulls) versus the number of sellers (or bears) in a market at a given time will directly impact its price.

If lots of people are trying to sell an asset, then supply will outstrip demand, and its price will fall. If most traders are trying to buy, on the other hand, demand exceeds supply, and its price will rise.

But buying and selling isn’t just how prices are set – it’s also an essential part of everyday dealing.

  • Buying and selling in trading
  • Bid and ask prices
  • What is the spread?

Buying and selling in trading

The fundamental principle behind any trade is to make a profit, which is determined by the difference between your opening and closing price.

Let’s say you decide to buy USD/CAD, which is currently at 1.2779.

USD/CAD then rises to 1.2979, meaning the US dollar has strengthened in value against the Canadian dollar. Your profit or loss is based on how much USD/CAD moved: in this case, 200 points. If you’d bought 10,000 USD/CAD, you’d make a $200 profit.

However, if USD/CAD fell 200 points, you would lose $200 from the trade.

FXUS-SC9-BuyingAndSelling1

Bid and ask prices
Whenever you view a financial market, you’ll see two prices listed. The price on the left is the bid and the price on the right is the ask (sometimes referred to as the offer).

When you sell, you trade at the bid
When you buy, you trade at the ask
FXUS-SC9-BidAndAsk1

The bid will always be lower than the current market price, while the offer will always be higher.

What is the spread?
The spread is the difference between the bid and the ask prices, and is an important thing to when calculating your profit or loss from a trade.

Let’s use another example. When EUR/USD is at 1.1259, it might have a bid of 1.1257 and an ask of 1.1260. So, to buy the EUR/USD, you would open at 1.1260.

You would need EUR/USD bid price to move above 1.1261 before you can earn any profit from your trade. If EUR/USD moves up 2 pips to 1.1261, but its bid is 1.1259, then you would still sell at zero profit or loss.

The post Inflation and CPI appeared first on Aone Broker.

]]> https://AoneBroker.com/academy/intermediate/inflation-and-cpi/feed/ 0 Central banks https://AoneBroker.com/academy/intermediate/central-banks/ https://AoneBroker.com/academy/intermediate/central-banks/#respond Tue, 01 Aug 2023 15:18:05 +0000 https://AoneBroker.com/?p=1184 Buying and selling is trading at its most fundamental. It determines your profit, and the price of an asset at any given time. As we covered in the Introduction to financial markets course, the number of buyers (or bulls) versus the number of sellers (or bears) in a market at a given time will directly …

Central banks Read More »

The post Central banks appeared first on Aone Broker.

]]> Buying and selling is trading at its most fundamental. It determines your profit, and the price of an asset at any given time.

As we covered in the Introduction to financial markets course, the number of buyers (or bulls) versus the number of sellers (or bears) in a market at a given time will directly impact its price.

If lots of people are trying to sell an asset, then supply will outstrip demand, and its price will fall. If most traders are trying to buy, on the other hand, demand exceeds supply, and its price will rise.

But buying and selling isn’t just how prices are set – it’s also an essential part of everyday dealing.

  • Buying and selling in trading
  • Bid and ask prices
  • What is the spread?

Buying and selling in trading

The fundamental principle behind any trade is to make a profit, which is determined by the difference between your opening and closing price.

Let’s say you decide to buy USD/CAD, which is currently at 1.2779.

USD/CAD then rises to 1.2979, meaning the US dollar has strengthened in value against the Canadian dollar. Your profit or loss is based on how much USD/CAD moved: in this case, 200 points. If you’d bought 10,000 USD/CAD, you’d make a $200 profit.

However, if USD/CAD fell 200 points, you would lose $200 from the trade.

FXUS-SC9-BuyingAndSelling1

Bid and ask prices
Whenever you view a financial market, you’ll see two prices listed. The price on the left is the bid and the price on the right is the ask (sometimes referred to as the offer).

When you sell, you trade at the bid
When you buy, you trade at the ask
FXUS-SC9-BidAndAsk1

The bid will always be lower than the current market price, while the offer will always be higher.

What is the spread?
The spread is the difference between the bid and the ask prices, and is an important thing to when calculating your profit or loss from a trade.

Let’s use another example. When EUR/USD is at 1.1259, it might have a bid of 1.1257 and an ask of 1.1260. So, to buy the EUR/USD, you would open at 1.1260.

You would need EUR/USD bid price to move above 1.1261 before you can earn any profit from your trade. If EUR/USD moves up 2 pips to 1.1261, but its bid is 1.1259, then you would still sell at zero profit or loss.

The post Central banks appeared first on Aone Broker.

]]> https://AoneBroker.com/academy/intermediate/central-banks/feed/ 0 Introduction to fundamental analysis https://AoneBroker.com/academy/intermediate/introduction-to-fundamental-analysis/ https://AoneBroker.com/academy/intermediate/introduction-to-fundamental-analysis/#respond Tue, 01 Aug 2023 15:17:28 +0000 https://AoneBroker.com/?p=1182 Buying and selling is trading at its most fundamental. It determines your profit, and the price of an asset at any given time. As we covered in the Introduction to financial markets course, the number of buyers (or bulls) versus the number of sellers (or bears) in a market at a given time will directly …

Introduction to fundamental analysis Read More »

The post Introduction to fundamental analysis appeared first on Aone Broker.

]]> Buying and selling is trading at its most fundamental. It determines your profit, and the price of an asset at any given time.

As we covered in the Introduction to financial markets course, the number of buyers (or bulls) versus the number of sellers (or bears) in a market at a given time will directly impact its price.

If lots of people are trying to sell an asset, then supply will outstrip demand, and its price will fall. If most traders are trying to buy, on the other hand, demand exceeds supply, and its price will rise.

But buying and selling isn’t just how prices are set – it’s also an essential part of everyday dealing.

  • Buying and selling in trading
  • Bid and ask prices
  • What is the spread?

Buying and selling in trading

The fundamental principle behind any trade is to make a profit, which is determined by the difference between your opening and closing price.

Let’s say you decide to buy USD/CAD, which is currently at 1.2779.

USD/CAD then rises to 1.2979, meaning the US dollar has strengthened in value against the Canadian dollar. Your profit or loss is based on how much USD/CAD moved: in this case, 200 points. If you’d bought 10,000 USD/CAD, you’d make a $200 profit.

However, if USD/CAD fell 200 points, you would lose $200 from the trade.

FXUS-SC9-BuyingAndSelling1

Bid and ask prices
Whenever you view a financial market, you’ll see two prices listed. The price on the left is the bid and the price on the right is the ask (sometimes referred to as the offer).

When you sell, you trade at the bid
When you buy, you trade at the ask
FXUS-SC9-BidAndAsk1

The bid will always be lower than the current market price, while the offer will always be higher.

What is the spread?
The spread is the difference between the bid and the ask prices, and is an important thing to when calculating your profit or loss from a trade.

Let’s use another example. When EUR/USD is at 1.1259, it might have a bid of 1.1257 and an ask of 1.1260. So, to buy the EUR/USD, you would open at 1.1260.

You would need EUR/USD bid price to move above 1.1261 before you can earn any profit from your trade. If EUR/USD moves up 2 pips to 1.1261, but its bid is 1.1259, then you would still sell at zero profit or loss.

The post Introduction to fundamental analysis appeared first on Aone Broker.

]]> https://AoneBroker.com/academy/intermediate/introduction-to-fundamental-analysis/feed/ 0 Take profits and stop losses https://AoneBroker.com/academy/beginner/take-profits-and-stop-losses/ https://AoneBroker.com/academy/beginner/take-profits-and-stop-losses/#respond Tue, 01 Aug 2023 12:13:13 +0000 https://AoneBroker.com/?p=1147 Buying and selling is trading at its most fundamental. It determines your profit, and the price of an asset at any given time. As we covered in the Introduction to financial markets course, the number of buyers (or bulls) versus the number of sellers (or bears) in a market at a given time will directly …

Take profits and stop losses Read More »

The post Take profits and stop losses appeared first on Aone Broker.

]]> Buying and selling is trading at its most fundamental. It determines your profit, and the price of an asset at any given time.

As we covered in the Introduction to financial markets course, the number of buyers (or bulls) versus the number of sellers (or bears) in a market at a given time will directly impact its price.

If lots of people are trying to sell an asset, then supply will outstrip demand, and its price will fall. If most traders are trying to buy, on the other hand, demand exceeds supply, and its price will rise.

But buying and selling isn’t just how prices are set – it’s also an essential part of everyday dealing.

  • Buying and selling in trading
  • Bid and ask prices
  • What is the spread?

Buying and selling in trading

The fundamental principle behind any trade is to make a profit, which is determined by the difference between your opening and closing price.

Let’s say you decide to buy USD/CAD, which is currently at 1.2779.

USD/CAD then rises to 1.2979, meaning the US dollar has strengthened in value against the Canadian dollar. Your profit or loss is based on how much USD/CAD moved: in this case, 200 points. If you’d bought 10,000 USD/CAD, you’d make a $200 profit.

However, if USD/CAD fell 200 points, you would lose $200 from the trade.

FXUS-SC9-BuyingAndSelling1

Bid and ask prices
Whenever you view a financial market, you’ll see two prices listed. The price on the left is the bid and the price on the right is the ask (sometimes referred to as the offer).

When you sell, you trade at the bid
When you buy, you trade at the ask
FXUS-SC9-BidAndAsk1

The bid will always be lower than the current market price, while the offer will always be higher.

What is the spread?
The spread is the difference between the bid and the ask prices, and is an important thing to when calculating your profit or loss from a trade.

Let’s use another example. When EUR/USD is at 1.1259, it might have a bid of 1.1257 and an ask of 1.1260. So, to buy the EUR/USD, you would open at 1.1260.

You would need EUR/USD bid price to move above 1.1261 before you can earn any profit from your trade. If EUR/USD moves up 2 pips to 1.1261, but its bid is 1.1259, then you would still sell at zero profit or loss.

The post Take profits and stop losses appeared first on Aone Broker.

]]> https://AoneBroker.com/academy/beginner/take-profits-and-stop-losses/feed/ 0 Using orders to open positions https://AoneBroker.com/academy/beginner/using-orders-to-open-positions/ https://AoneBroker.com/academy/beginner/using-orders-to-open-positions/#respond Tue, 01 Aug 2023 12:12:51 +0000 https://AoneBroker.com/?p=1145 Buying and selling is trading at its most fundamental. It determines your profit, and the price of an asset at any given time. As we covered in the Introduction to financial markets course, the number of buyers (or bulls) versus the number of sellers (or bears) in a market at a given time will directly …

Using orders to open positions Read More »

The post Using orders to open positions appeared first on Aone Broker.

]]> Buying and selling is trading at its most fundamental. It determines your profit, and the price of an asset at any given time.

As we covered in the Introduction to financial markets course, the number of buyers (or bulls) versus the number of sellers (or bears) in a market at a given time will directly impact its price.

If lots of people are trying to sell an asset, then supply will outstrip demand, and its price will fall. If most traders are trying to buy, on the other hand, demand exceeds supply, and its price will rise.

But buying and selling isn’t just how prices are set – it’s also an essential part of everyday dealing.

  • Buying and selling in trading
  • Bid and ask prices
  • What is the spread?

Buying and selling in trading

The fundamental principle behind any trade is to make a profit, which is determined by the difference between your opening and closing price.

Let’s say you decide to buy USD/CAD, which is currently at 1.2779.

USD/CAD then rises to 1.2979, meaning the US dollar has strengthened in value against the Canadian dollar. Your profit or loss is based on how much USD/CAD moved: in this case, 200 points. If you’d bought 10,000 USD/CAD, you’d make a $200 profit.

However, if USD/CAD fell 200 points, you would lose $200 from the trade.

FXUS-SC9-BuyingAndSelling1

Bid and ask prices
Whenever you view a financial market, you’ll see two prices listed. The price on the left is the bid and the price on the right is the ask (sometimes referred to as the offer).

When you sell, you trade at the bid
When you buy, you trade at the ask
FXUS-SC9-BidAndAsk1

The bid will always be lower than the current market price, while the offer will always be higher.

What is the spread?
The spread is the difference between the bid and the ask prices, and is an important thing to when calculating your profit or loss from a trade.

Let’s use another example. When EUR/USD is at 1.1259, it might have a bid of 1.1257 and an ask of 1.1260. So, to buy the EUR/USD, you would open at 1.1260.

You would need EUR/USD bid price to move above 1.1261 before you can earn any profit from your trade. If EUR/USD moves up 2 pips to 1.1261, but its bid is 1.1259, then you would still sell at zero profit or loss.

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