Bid and Ask Price Explained
Understand the bid price, ask price, and spread—the core of every forex quote.
Last reviewed: 2026-03-06
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Overview
Every forex quote has two prices: the bid and the ask. The bid is the price at which you can sell the base currency. The ask (or offer) is the price at which you can buy it. The difference between them is the spread—the broker's compensation and your cost to enter a trade.
For example, if EUR/USD is quoted 1.1000 / 1.1002, the bid is 1.1000 and the ask is 1.1002. The spread is 2 pips. You buy at the ask and sell at the bid.
Why Spread Matters
The spread matters because you start every trade slightly in the red. If you buy at 1.1002, the price must rise above 1.1002 for you to profit. Tighter spreads mean lower trading costs. Major pairs like EUR/USD typically have the smallest spreads; exotic pairs have wider spreads.
How To Read Quotes
Brokers display quotes in different formats. Some show both bid and ask (e.g. 1.1000 / 1.1002). Others show the mid-price and spread (e.g. 1.1001 ± 1 pip). Always know which price you are getting before you click buy or sell.
FAQ
Common questions about this topic.
What is the bid price?
The bid is the price at which you can sell the base currency. It is the price the market (or broker) is willing to pay you.
What is the ask price?
The ask (or offer) is the price at which you can buy the base currency. It is the price you must pay to enter a long position.
Why is the ask higher than the bid?
The spread (ask minus bid) is the broker's compensation. You always buy higher and sell lower, so the broker earns the difference.
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Disclaimer and sources
Educational content only. Not financial advice.
Important disclaimer
Forex trading involves risk. This content is for educational purposes only.