Bids For Forex Retail Auction

How do you know if your bid is too high or too low for a given currency pair? To make the best decision possible, it is important to understand the difference between the bid and the ask price. The bid is the price a dealer is willing to pay for a particular currency pair. The asking price, on the other hand, is the price a seller is willing to sell it for. Both of these values must match for a trade to occur. Prices are set by two forces in the market: supply and demand. The wider the gap between the buy-sell prices, the higher the spread.

There are two types of foreign exchange auctions: SME Foreign Exchange Auctions and Main Foreign Exchange Auctions. SME Foreign Exchange Auctions are for bids between USD$2,500 and 20,000, while the Main Foreign Exchange Auction is for bids over USD$50,000. A valid invoice must be issued within the past 30 days, showing the delivery period and stating the consignor and consignee details. ZIMRA stamps Bills of Entry, Credit Payments, and other related documents.

The market makers are responsible for displaying the ask price, or bid, on their screens. Their function is to make two-way bids available for the public to buy or sell an asset. Market makers are essential for the efficient functioning of the marketplace. A bid can be made either online, through brokers, or live. There are various types of bids, including sealed bids, auction bids, and online bids.

The CBN supplies the two currencies for retail secondary market intervention sales, which is the USD and the CNY. Customers with other currency forms may apply for retail intervention sales. Once the bid is successful, the bank must convert the money into form M currency before the auction results are released. Results of the auction are normally published one week after the auction. The CBN intervenes in the market in order to keep the foreign exchange market liquid.

Authorised Dealers, also known as BDCs, are the primary buyers of dollars from the CBN. These dealers submit bids on behalf of Bureaux-de-Change operators and other end users. However, the CBN acknowledges the importance of the black market and touts the benefits of WDAS in closing the supply-demand gap by developing local BDCs. For these reasons, it is important to understand how the retail forex auction works and what it means for your business.

While the over-the-counter trade allows you to negotiate with other traders, an auction does not allow you to do this. It is important to understand that the exchange rates are different between dealers in the same city. Therefore, it is crucial to compare prices before making a purchase. The difference between bids and offers is the spread. This spread determines the size of a currency transaction. If your bid is higher than the asking price, the spread will be lower than the selling price.