The range for today in EUR/LVL is a high of 0.7018 and a Low of 0.6995. Right now the bid/ask is 0.7005 and 0.7036. What does this mean in pips as far as risk is concerned upon entering and where would price have to go in order for me to break even if I got long or short this market? Thanks for the help.
After submitting the above question, I was able to locate a beginners guide which explains the bid/ask. I want to make sure I have this right. Looking at the past few days of trading in the EUR/LVL, the average high of almost every Price bar has been 0.7020, and the low of almost every price bar has been 0.6980. The Bid has had a high of 0.7010 and a low of 0.6980 and the Ask has had a high of 0.7060 and a low of 0.7030. If these highs and lows represented the true ranges for the bid and ask for the past few days, then so far, if these numbers are correct, it has been impossible for a trader to make any money. The lowest I would have been able to buy would have been 0.7030, and the highest I've been able to sell is 0.7010 Am I understanding this correctly?
Unless you have some sort of fundamental knowledge that is known only by you why bother with this pair? There are quite a few that have decent spreads.
Your right Gary. I'd just like to know if I'm grasping the concept of how the bid/ask worked. I think I understand, but I'd kinda like someone to 'grade my test', so to speak.
Whose quotes are you watching? Normally quotes are posted in pairs, the ask and the bid and the difference between them is the spread. There are lots of free quote and chart services out there for currencies along with free demo trading. Try one of those for awhile and you will soon see how it works.
I've been using Saxo Trader 2 There are 2 prices. And your right, the Eur is underneath the left box and the LVL is underneath the right box. The price on the left is 0.6985 and the one on the right is 7055 Assuming my original parameters were right, was my understanding of how it works correct?