The Market Never Stops

The market price is dynamic. It never stops (except when the market is closed). Price quote for currency pairs display in the form of a two-way quote.

We have the bid price and the ask price.

However, the bid price is the amount that traders will buy the quote currency over and above the base currency. On the other hand, ask price is the amount that traders will sell one unit of the base currency over and above the quote currency.

Typically, sellers will get the bid price while buys will have the ask price. The difference between the bid price and the ask price is the broker’s spread.

Experienced traders are able to forecast where price is heading from time to time. Some of the factors that guide experienced traders are;
1. Technical analysis
2. Fundamental analysis
3. Trend
4. Supply and Demand force
5. Price Breakout
6. Indicators.

The list is endless. A trader must be able to correctly judge and determine the right direction the market price is heading to for successful trades to be made. Market price spikes (large upward or downward movement of price in a short period of time) sometimes due to a news update, remarks or rhetorics from a global political figure, natural disaster and so many other factors.

The market price movement in forex trading is all about “Whatever goes up, must come down, and vice versa”. It’s best not to chase the price. With good money management skills, the market price will always come back to your trade. It may only take some time.

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