The offer is the price at which a dealer can sell the currency pair, and the question is the price at which the trader can purchase it. The dissimilarity between the bid and this is known as the ‘spread,’ and is the cost of the deal, or the amount that the forex system will have to make to break even.
Trades are made on margin, with a least requirement of 1%. This permits for much more influence than other markets, as well as security against losses. It might be said that the history of the forex market commenced with the origin of the global free-floating currency scheme.
