Should I use the bid or ask price as reference

Beginner Questions
1

When I want to place a sell limit order, should I use the bid or ask price as reference price? Also, for buy limit order, should I use the bid or ask price as reference price? Please, I am new and the pipsology course didn’t cover this angle.

2

Hi Emekadavid,

This is how I remember :

Bid = the price at which you as a trader can bid something = sell
Ask = the price at which you can ask something = buy

So, sell limit order = bid price, buy limit order = ask price.

Hope this helps!