Which current price line do you have on your charts, bid or ask (why/why not?)?
I’m not always looking at a quote board, like when working on charts and the like and decided that would be useful to see what was happening and being able to follow it.
Thanks hope you all having a good week.
Hey, Tom
My charts are all BID charts. Why? Because the first time I opened a forex chart, more than 5 years ago, it was — by default — a BID chart. That’s what my FXCM charting package presented to me, so that’s what I ran with. Right away, I got comfortable with it, and never thought about switching to ASK charts.
The choice is really arbitrary. Recall that you SELL at the BID price, and you BUY at the ASK price. Always, no exceptions.
This means …
[ul]
[li]If you use a BID chart, then a MARKET ORDER to SELL will put you SHORT at the price you see on your chart.
[/li]And a MARKET ORDER to BUY will put you LONG at the price you see on your chart PLUS the spread.
[li]If you use an ASK chart, then a MARKET ORDER to BUY will put you LONG at the price you see on your chart.
[/li]And a MARKET ORDER to SELL will put you SHORT at the price you see on your chart MINUS the spread.
[/ul]
Pick whichever you like, and then stick with it. Switching back and forth between BID and ASK charts will make you crazy.
sometimes i have both if its a larger spread so i can see what price im going in at more easily