Simple Trading Example
Example 1: FTSE March:
Enter the amount that you want to trade, and whether you want to BUY or SELL.
The first price
5,600 = bid price = price at which you can SELL (going short) the instrument.
If you believe the price will go down you should SELL.
The second price
5,610 = offer price = price at which you can BUY (going long).
If you believe the price will go up you should BUY.
Each quote applies for a specific market or instrument – FTSE, and for a specified time or date in the future – March.
Spread
The difference between bid and offer prices is commonly called the spread.