Question: Ask and Bid prices. Which is the actual (or main) market price of financial instruments?
When you trade online, such as Forex, Stocks or Commodities, there are normally two market prices.
It is called “Two Way Prices”, and it is the very standard for any financial markets.
The both market prices show the main prices for buy or sell orders, so you cannot define which one is the main price or actual market price by referring to them.
In fact, there is always the most weighted price close to them, where many market orders are placed and more liquidity is available.
You can find the price by referring to “Depth of Market” or “Time & Sales” board if you are using MetaTrader4 or 5.
On those boards, you can find which market price is more liquidated and at which price traders are placing orders at the moment.
The most weighted market price is also a good reference though, it is also important for you to know both ask and bid prices while trading.
For the list of MT4 and MT5 brokers, please visit the page below.
