As I understand it, Bid price is the actual market price, while Ask price is an artificial price which is determined by each broker for either Opening or Closing an order (creating the 'spread').
My question is, what constitutes a "tick" ? i.e. a tick is the point of incoming price change. When I want to save X number of ticks in an array, sometimes you have a situation where only Ask price changes while Bid remains the same. So basically the market price hasn't changed, and yet it will still trigger the special function 'start()'.
So does a change in Ask price really constitute as a "new tick" if the bid price hasn't really changed? Should I just skip these "Ask only" ticks and not count them in when wanting to save "new tick" information inside an Array?
What do you guys think?
Bid price is the actual market price.________No.
My question is, what constitutes a "tick" ?_____incoming price change.
So does a change in Ask price really constitute as a "new tick".____Yes.
Should I just skip these "Ask only"________Do you have a Trading Platform which can read Ask?
Mt4 data is Bid only for all practical purposes.
The Bid is the Actual Price - Spreads, The Ask is the Actual Price + Spreads.
The Actual Price is whatever the Broker is quoted from her Inter-Bank dealer.
Dealing Desk/Market Makers do-not always have even distance between Actual_to_Ask vs Actual_to_Bid. They can make the spreads heavier on one side to encourage opposite action, limit their exposure, example...everyone wants to sell during a news ... the bucket shop could make the distance from actual to bid much wider.
Inter-Banks have spreads too, they're just much smaller than the retail rates.
If you have a platform which could utilize the Ask, then saving them would be helpful as such a platform could simulate variable spreads easier, and be much closer to reality.
Thank you for taking the time to reply to my questions.
Yes, I understand what you are saying with regards to Bid/Ask. I just meant in terms of practical considerations if analysis should be made mainly off of Bid price, or Ask, or Both, but of course it depends on what your purpose is, so I thought it over and decided that Bid was more relevant for the type of calculations which I want to make.
I'm curious however, what did you mean when you asked if I have a platform which could utilize the Ask price? Isn't 'Ask[i]' a standard series array in MQL4 and thus MetaTrader 4 (i.e. the platform)?
Isn't 'Ask[i]' a standard series array in MQL4 and thus MetaTrader 4 (i.e. the platform)?
No. Both Bid and Ask are actual prices to you the retail customer. A change on either or both constitutes a tick. During news events it is not uncommon for only one to move during one tick. In ordinary market conditions they both typically move together to maintain the spread.
Spread = Ask - Bid
To say there is an "actual price" with half the spread to Ask and half the other way to Bid is perhaps a nice way to think about it, but it is also an unnecessary consideration.
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