a small-cap stock may have a bid-ask spread of 50 cents or more. Youve probably faced a similar logic in a bank exchanger: rates are always different for sellers and buyers. The difference between these two prices is called spread. The price, at which we sell the pair on Forex, is called. Foreign exchange kiosks and banks often add 5 when you convert hard cash (for the major currencies; more for other currencies). Interbank rates - 0), with a margin close to zero, are the "official" rates"d in media such as The Wall Street Journal. Note: You may see the message in the Currency Converter's Details section, "Estimated price based on daily US dollar rates." This message is displayed for currency pairs where relatively little data is available, and means that the exchange rate for the converted currencies was computed. Our Rates are rounded to up to five significant digits, with a few exceptions.
Bid And Asked - Investopedia
The bid price represents the maximum price that a buyer is willing to pay for a security. The"d amount,.3600 is the amount of the" currency, USD, it takes to equal 1 unit of the base currency, EUR. Currency Converter and other tools are averages for the global foreign exchange market gathered from frequently updated sources, including our. This results in the two exchange rates shown in the margin result. The meaning of the" is that one Euro is worth.36 US Dollars. Note that the cost of spread on Forex is usually negligible in comparison with the expenses on the stock or options markets.