CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of Pepperstone Limited’s retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Risk Warning.

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Bid and Ask Prices

Posted on: 22 July 2014 , by: Pepperstone Support , category: About Trading

There are two aspects of the spread, the bid and ask price. It is important to be aware of the functions that each part of the spread (The Bid and Ask Price) plays when placing a trade.

Bid: The bid price is used when opening a sell trade and closing your buy trade. In the trading platform available, it is this price that is used to create the chart price.

Ask: The ask price is used when opening your buy trades and closing your sell trades. The ask price sits above the chart price as it is always higher in value than the bid.

You can see live ask prices by going to the platform, right clicking on the chart, select properties, common tab and ensure that “Show Ask line” is selected.

Bid and Ask Price

When you open a buy trade, it will be opened at the ask price and closed at the bid price. Alternatively when you open a sell trade, it is opened on the bid price and closed at the ask price.

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# As published in Finance Magnates Intelligence Report Q3 2016 (page 30).
~ Actual average daily trading volume. Sample period 1st July 2017 – 30th April 2018.
**Lowest spread available on Razor Account as seen on www.myfxbook.com/forex-broker-spreads.
+ Based on winning 9 international forex industry awards.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of Pepperstone Limited’s retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Trading leveraged products is not suitable for everyone and, in the case of Professional Clients, may result in you losing more than your initial investment. You do not own, or have any rights to, the underlying assets. You should only trade with money you can afford to lose. Past performance is no guarantee of future performance and tax laws may be subject to change. Pepperstone is not a financial advisor and all services are provided on an execution only basis. The information on this website is general in nature and does not take into account your or your client’s personal objectives, financial situations or needs. Please consider our Risk Disclosure Statement and legal documentation documentation and ensure that you fully understand the risks involved in light of your personal circumstances before you decide whether to acquire our services. We encourage you to seek independent advice if necessary.

Pepperstone Limited is a limited company registered in England & Wales under Company Number 08965105 and is authorised and regulated by the Financial Conduct Authority (Registration Number 684312). Registered office: 68 Hanbury Street, London E1 5JL, United Kingdom.

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