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View Full Version : Price Risk



oussama94
05-28-2017, 02:26
Forex prices are quoted and charted using only the current bid price stream; there is no
concept of a last price in Forex. TradeStation offers analysis and trading tools that allow
you to visualize and measure the bid-ask spread.
Since the transactional cost of trading Forex is tied to the bid-ask spread, it is important
to understand what the normal bid-ask spread is for any pair, and what that spread
means in the actual cost per trade. The bid-ask spread can also fluctuate throughout
the trading day and is often a function of the liquidity of the Forex pair; you may also
see slightly wider bid-ask spreads in quiet market situations, especially on lightly traded
Forex pairs. Just like any trading market, Forex prices are driven by short- and longterm
supply and demand, which can cause prices to move rapidly and often erratically.
Traders need to employ sound risk-management techniques on each and every trade