BANKING AFFAIRS

Detailed explanation-1: -The bid price is what the dealer is willing to pay for a currency, while the ask price is the rate at which a dealer will sell the same currency.

Detailed explanation-2: -The bid price refers to the highest price a buyer will pay for a security. The ask price refers to the lowest price a seller will accept for a security. The difference between these two prices is known as the spread; the smaller the spread, the greater the liquidity of the given security.

Detailed explanation-3: -The term “ask” refers to the lowest price at which a seller will sell the stock. The bid price will almost always be lower than the ask or “offer, ” price. The difference between the bid price and the ask price is called the “spread."

Detailed explanation-4: -Selling rate: Also known as the foreign exchange selling price, it refers to the exchange rate used by the bank to sell foreign exchange to customers. It indicates how much the country’s currency needs to be recovered if the bank sells a certain amount of foreign exchange.

Detailed explanation-5: -The ASK price is the price at which the forex broker is willing to sell (to you) the base currency in exchange for the counter currency.