At any given time, every asset on the market has two prices
The 'Buy' price at which an underlying asset can be purchased.
The 'Sell' price at which an underlying asset can be sold.
The spread is the difference between the Sell and Buy prices.
What price is used to build a chart in Libertex
The Sell price is displayed by default, but users can select the price they want to be displayed on the chart on the platform. To change the parameter, just click the arrow icon showing the direction and select the price display type in the dropdown menu.
In the trade window, users can see the chart display as price in the trade direction they have selected. This could be:
The Buy price when buying an asset
or the Sell price when selling an asset
Let's take a look at an example.
Let's say that you've analysed the precious metals market and decided that the price of gold will go up. You buy gold at €1,800 per ounce. That is the Buy price. In 3 months, gold prices actually do go up, and you sell your ounce of gold at €2,000. Now, you're a seller, which means your trade was made at the Sell price. You've accomplished your goal of making a profit. Your profit is €200 (€2,000-€1,800=€200).
Of course, the opposite may happen. You have an ounce of gold, but analysis shows that the metal will decrease in value, so you decide to sell it at €1,800 per ounce. In this case, the €1,800 is the Sell price. After some time, you realise that gold is at its lowest right now and should invest more in it. You buy another ounce at €1,400 per ounce, which is the Buy price. This operation also brings a profit, €400 in this case: €1800-€1400=€400.
To avoid confusion, you just need to wrap your head around how trades are made and remember that on the Forex market (and others), the trade is made at the Buy price when opening a buy position. When closing a buy position, the trade is made at the Sell price.
When opening a sell position, the trade is made at the Sell price. And when closing a sell position, the trade is made at the Buy price. So, when trading at the Buy or Sell price, display prices according to the corresponding type.