The basics: what is spot, bid & ask and spread in terms of currency 

Published by Tavex Analysts 1 month ago
Gold price (XAU-GBP)
3,405.37 GBP/oz
  
- GBP65.51
Silver price (XAG-GBP)
56.95 GBP/oz
  
- GBP5.34

Before purchasing in currencies, make sure you know the basics.

What is spot? bid & ask? spread and premium?

The spot is the current market price of a currency at which one currency can be exchanged for another set by supply and demand factors in the global financial markets.

The bid (or buy as a layman’s term) is the price at which market participants, such as Tavex, are ready to buy currencies at any given time.

The ask (or sell as a layman’s term) is the price at which market participants, such as Tavex, are ready to sell currencies at any given time.

The spread is the difference between the ask and the bid price which represents the transactions cost.

Gold price (XAU-GBP)
3,405.37 GBP/oz
  
- GBP65.51
Silver price (XAG-GBP)
56.95 GBP/oz
  
- GBP5.34

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