Right hello there my name is Adrian Busey and in this video we're going to be looking at the difference between the bid and ask prices on your trading platforms so for this video we're going to be looking at the FX um trading stations let me just bring it over now so as we log in to the trading station platform we'll get an idea about the main markets on our quote page here.
And of course you can add in I'm not here to necessarily to do a platform demonstration merely to give you a bit of an idea about what each of these different little bits mean so on the advanced dealing rates section we can see a snapshot with a bit of detail against each market let's have a look at the simple dealing rate section there and then you'll see here the sell price for each market.
And then the buy price there so this is the the prices at which you can sell the Euro against the US dollar and here is the price that you can buy the Euro against the US dollar so these are prices that are being quoted by fxcm the broker and every company's quote will be a little bit different based on the liquidity that they're getting so they're feed-through from this the different prime banks.
And the quiddity providers that they have access to well get into spread a little bit later but one of things you'll notice though is a difference between the bid and the ask price of the sell price is a bid price and that is the buyer down on that side is the ask price there so the bid and the ask or the bid in the offer basically the two prices at which you can trade on a level one platform the reason why there is a difference is because this is a simple marketplace there has to be a difference because if they were at the same price then the buyers.
And the sellers will be matched with each other wouldn't they because if someone's prepared to buy it a thousand and someone's prepared to sell it a thousand then they're just going to be matched on it so there has to be a difference in those prices the market rate at which someone is prepared to buy at ie if you sell you'll be matched with that person and then the market rate at which you want to can buy at which is the lowest price that somebody wants to sell the Euro against the u.s. dollar at so that's why there is a difference in the Buy and the sell price there.