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12/24/2023 0 Comments Is spread betting like gambling![]() ![]() So, if you thought that GBP would become stronger against USD, you would “buy”, as that means you think that you’ll need more dollars to buy a single pound in the near future. ![]() The difference between these two figures is known as the “spread”. When looking at currency pairs, you’ll also see a “buy” or “bid price” and a “sell price”, because you are essentially always selling one currency to buy another. If the price of GBP/USD is 1.3715, that means 1 GBP is worth 1.3715 USD. The one on the right is known as the “quote”, which is USD in this instance. The left-hand currency, in this case GBP, is what’s called the “base currency”. ![]() Let’s use the currency pair of British pounds to US dollars (GBP/USD) as an example. This allows you to trade on the exchange rate between two currencies. 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