Glossary of Terms

Search common forex trading terms and definitions from A to Z.

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Below is a glossary of terms that are used in the online trading industry. Select the first letter of the word you are seeking from the list above to jump to the appropriate section of the glossary.

Ask

In the over-the-counter market, the term “ask” refers to the lowest price at which a broker is willing to sell a security (e.g. currency, stock, index or commodity) at any given time. The ask price, also known as the “offer” price, will almost always be higher than the “bid” price (= the highest price a broker is willing to pay to buy a security at any given time). Brokerage firms typically make money on the difference between the bid price and the ask price. This difference is called the “ask-bid spread.”

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