Your decisions in Forex trading should make use of at least these four data sources:
1) Bid price
2) Ask price
3) Mid price
4) Indicative prices
You should know what spead your broker is offering on the currencies as this can help you in setting the slippage on each currency. You should be informed about the margin that your broker offers. Once you have decided the price at which you are going to buy the currency, the quantity to buy can only be appropriately fixed only after knowing the margin that the broker offers. The success of your currency trading venture depends a great deal on the restrictions set by your broker. For example, your broker may allow only ten pip stops from your initial entry price. The times at which the broker is available for trading is also important. Be fully aware of these broker restrictions and their potential effects on the profits earned through currency trading.
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