What is an offer in forex?
In forex trading, an offer refers to the price at which a trader can sell a currency pair. It represents the highest price that a buyer is willing to pay for the currency at a given time. The offer price is always higher than the bid price, creating the bid-ask spread, which is the difference between the two prices.
Traders can choose to accept the offer price to sell their currency pair, and it is crucial for understanding the potential selling price and overall market sentiment. Understanding offers is fundamental for executing successful forex trades.
Example of an offer in forex
A specific example of an offer could be the bid-ask spread for the EUR/USD currency pair. Let’s say the current bid price for EUR/USD is 1.2000, and the ask price is 1.2002.
In this case, the offer or ask price is 1.2002, which means you can buy 1 euro for 1.2002 US dollars. This offer reflects the price at which the market maker is willing to sell the currency pair.