Forex

There are three groups of traders in the market: buyers, sellers, and undecided
traders. "Ask" is what a seller asks for his merchandise. "Bid" is what
a buyer offers for that merchandise. Buyers and sellers are always in conflict.
Buyers want to pay as little as possible, and sellers want to charge as
much as possible. If members of both groups insist on having their way, no
trade can take place. No trade means no price - only wishful quotes of buyers
and sellers.
A seller has a choice: to wait until prices rise, or to accept a lower offer
for his merchandise. A buyer also has a choice: to wait until prices come
down, or to offer to pay more to the sellers.
A trade occurs when there is a momentary meeting of two minds: An
eager bull agrees to a seller's terms and pays up, or an eager bear agrees to a
buyer's terms and sells a little cheaper. The presence of undecided traders
puts pressure on both bulls and bears.
When a buyer and a seller bargain in private, they may haggle at a
leisurely pace. The two must move much faster when they bargain at the
exchange. They know that they are surrounded by a crowd of other traders
who may butt in on their deal at any moment.
The buyer knows that if he thinks for too long, another trader can step in
and snap away his bargain. A seller knows that if he tries to hold out for a
higher price, another trader may step in and sell at a lower price. The crowd
of undecided traders makes buyers and sellers more anxious to accommodate
their opponents. A trade occurs when there is a meeting of two minds.