How transactions are made.
Any currency unit on pocket option is expressed by a three-letter code. For example, the pair “British pound / US dollar” looks like this: GBPUSD. The currency on the left is called the base currency (GBP in this case), and the currency on the right is the quote currency (USD in this case).
Since any asset can be sold or bought, there are two prices:
Bid – the bid price. At this price, the seller is ready to sell the base currency (in this case, GBP) and buy the quote currency (USD).
Ask (Ask) – bid price. At this price the buyer is ready to buy the base currency (GBP) and sell the quoted currency (USD).
Spread is the difference between bid and ask. It is the earnings of a brokerage company, commission, without which trading is impossible. Spread is paid once – at the moment of transaction opening.
The volume of any transaction is measured in lots. The standard is 100 000 units of base currency. Earlier private persons had no possibility to trade on Forex as not everyone had such sum of money. Now, thanks to the leverage, any participant can engage in trading. This is what made Forex so popular.