{"id":53496,"date":"2025-05-07T19:57:13","date_gmt":"2025-05-07T11:57:13","guid":{"rendered":"http:\/\/test.swqi.tw\/?p=53496"},"modified":"2025-12-03T03:43:26","modified_gmt":"2025-12-02T19:43:26","slug":"forex-bid-ask-price-explained","status":"publish","type":"post","link":"https:\/\/mister.forex\/en\/forex-bid-ask-price-explained\/","title":{"rendered":"Forex Quotation Tutorial:&nbsp;Instantly Understand the Difference and Application of Ask Price and Bid Price"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"53496\" class=\"elementor elementor-53496\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-bc210ec e-flex e-con-boxed e-con e-parent\" data-id=\"bc210ec\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-824cbc9 elementor-widget elementor-widget-html translation-block\" data-id=\"824cbc9\" data-element_type=\"widget\" data-widget_type=\"html.default\"><div style=\"16px\"><span>\n<h2><strong>Understanding Forex Quotes:&nbsp;The Difference and Application of Bid and Ask Prices<\/strong>&nbsp;<\/h2>\n\nWhen you open a forex trading platform and prepare to start trading, the first thing you see is the constantly changing prices.<br>\nYou will notice that for each currency pair, usually two prices are displayed instead of just one.<br>\nThese two prices are the <strong>\"Ask Price\"<\/strong>&nbsp;and the <strong>\"Bid Price\"<\/strong>.<br><br>\nUnderstanding what these two prices represent and which price to look at when you want to buy or sell is the most basic prerequisite for forex trading.<br>\nIf you get it wrong, it may lead to order costs that are not as expected.<br>\nDon\u2019t worry, this article will explain clearly and simply the difference and usage of these two prices.<br><br>\n\n<h2><strong>1. Forex Quotes:&nbsp;A Pair of Prices<\/strong>&nbsp;<\/h2>\nWe know that forex trading involves buying and selling <strong>\"currency pairs\"<\/strong>.<br>\nA currency pair quote shows the value of the <strong>\"base currency\"<\/strong>&nbsp;(the currency on the left side of the slash) measured in the <strong>\"quote currency\"<\/strong>&nbsp;(the currency on the right side of the slash).<br>\nThe market always provides two slightly different numbers for this value, forming a pair of quotes.<br><br>\n\n<h2><strong>2. \"Ask Price\":&nbsp;The Price You Pay When Buying<\/strong>&nbsp;<\/h2>\nThe <strong>\"Ask Price\"<\/strong>&nbsp;is sometimes also called the <strong>\"Offer Price\"<\/strong>.<br>\nThe key points you need to remember are:&nbsp;<br><br>\n<ul>\n <li>This is the price at which the market (or your broker) is willing to <strong>\"sell\"<\/strong>&nbsp;the base currency to you.<\/li>\n <li>In other words, when you want to <strong>\"buy\" (Buy \/ Long)<\/strong>&nbsp;the currency pair, the price you pay is this <strong>\"Ask Price\"<\/strong>.<\/li>\n <li>It is usually the higher price in the quote. Think of it this way:&nbsp;when you want to buy something from someone, the seller\u2019s asking price (Ask Price) is usually higher.<\/li>\n<\/ul>\n<br>\n\n<h2><strong>3. \"Bid Price\":&nbsp;The Price You Receive When Selling<\/strong>&nbsp;<\/h2>\nThe <strong>\"Bid Price\"<\/strong>&nbsp;is sometimes also called the <strong>\"Buyer\u2019s Price\"<\/strong>.<br>\nThe key points you need to remember are:&nbsp;<br><br>\n<ul>\n <li>This is the price at which the market (or your broker) is willing to <strong>\"buy\"<\/strong>&nbsp;the base currency from you.<\/li>\n <li>In other words, when you want to <strong>\"sell\" (Sell \/ Short)<\/strong>&nbsp;the currency pair, the price you receive is this <strong>\"Bid Price\"<\/strong>.<\/li>\n <li>It is usually the lower price in the quote. Think of it this way:&nbsp;when you want to sell something to someone, the buyer\u2019s bid price (Bid Price) is usually lower.<\/li>\n<\/ul>\n<br>\n\n<h2><strong>4. The Difference Between the Two:&nbsp;Understanding the \"Spread\"<\/strong>&nbsp;<\/h2>\nNow you understand that at any time, the market has a bid price and an ask price, and the ask price is always higher than the bid price.<br>\nSo, what is the difference between these two prices?<br><br>\nThis difference is what we have discussed in detail in previous articles as the <strong>\"spread\"<\/strong>.<br>\n<strong>Spread = Ask Price - Bid Price<\/strong>&nbsp;<br><br>\nThe spread is one of the main costs of trading, representing the fee you pay to complete a trade.<br><br>\n\n<h2><strong>5. Practical Application:&nbsp;Which Price to Look at When Placing Orders?<\/strong>&nbsp;<\/h2>\nUnderstanding the bid and ask prices is crucial for your actual order placement:&nbsp;<br><br>\n<ul>\n <li>When you expect a currency pair to rise and decide to click the <strong>\"Buy\"<\/strong>&nbsp;button on the platform or set a buy order, your trade will be executed at the current <strong>\"Ask Price\"<\/strong>.<\/li>\n <li>When you expect a currency pair to fall and decide to click the <strong>\"Sell\"<\/strong>&nbsp;button on the platform or set a sell order, your trade will be executed at the current <strong>\"Bid Price\"<\/strong>.<\/li>\n<\/ul>\n<br>\nPlease remember:&nbsp;<br><br>\n<ul>\n <li><strong>Buying is executed at the higher Ask price.<\/strong>&nbsp;<\/li>\n <li><strong>Selling is executed at the lower Bid price.<\/strong>&nbsp;<\/li>\n<\/ul>\n<br>\nThis also explains why your trade initially shows a slight loss\u2014because the market price needs to move beyond the spread distance before you break even.<br><br>\n\n<img class=\"alignnone size-full wp-image-44442\" src=\"https:\/\/mister.forex\/wp-content\/uploads\/2024\/12\/bid-ask-price.webp\" alt=\"\" width=\"1000\" height=\"500\">\n\n<h2><strong>6. A Clear Example<\/strong>&nbsp;<\/h2>\nSuppose you see the GBP\/USD quote on the trading platform as follows:&nbsp;<br>\n<strong>GBP\/USD 1.2690 \/ 1.2691<\/strong>&nbsp;<br><br>\nHere:&nbsp;<br>\n<ul>\n <li>The number on the left side of the slash, <strong>1.2690<\/strong>, is the <strong>Bid Price<\/strong>.<\/li>\n <li>The number on the right side of the slash, <strong>1.2691<\/strong>, is the <strong>Ask Price<\/strong>.<\/li>\n<\/ul>\nThe spread between them is <strong>1.2691 - 1.2690 = 0.0001<\/strong>, which is <strong>1 pip<\/strong>.<br><br>\nNow:&nbsp;<br>\n<ul>\n <li>If you think GBP will rise and decide to <strong>buy GBP\/USD<\/strong>, your execution price will be <strong>1.2691<\/strong>.<\/li>\n <li>If you think GBP will fall and decide to <strong>sell GBP\/USD<\/strong>, your execution price will be <strong>1.2690<\/strong>.<\/li>\n<\/ul>\n<br>\n\n<h2><strong>Conclusion<\/strong>&nbsp;<\/h2>\nUnderstanding the bid and ask prices in forex quotes is fundamental to trading.<br>\nIn summary:&nbsp;<br><br>\n<ul>\n <li><strong>Bid (Sell Price):<\/strong>&nbsp;The price you receive when selling (lower price).<\/li>\n <li><strong>Ask (Buy Price):<\/strong>&nbsp;The price you pay when buying (higher price).<\/li>\n<\/ul>\nThe difference between them is the <strong>spread<\/strong>.<br><br>\nNext time you prepare to place an order, make sure you are looking at the correct price.<br>\n<strong>Buy at Ask, Sell at Bid.<\/strong>&nbsp;<br>\nThis seemingly simple detail is the first step to ensuring your trade execution meets your expectations.<br>\nIt is recommended to observe the movement of these two prices and the changes in the spread on a demo platform.<br>\n<\/span><\/div><\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9161750 elementor-widget elementor-widget-template\" data-id=\"9161750\" data-element_type=\"widget\" data-widget_type=\"template.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-template\">\n\t\t\t\t\t<div data-elementor-type=\"container\" data-elementor-id=\"49848\" class=\"elementor elementor-49848\" data-elementor-post-type=\"elementor_library\">\n\t\t\t\t<div class=\"elementor-element elementor-element-43b58eaa e-flex e-con-boxed e-con e-parent\" data-id=\"43b58eaa\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-83f27ac elementor-widget elementor-widget-html translation-block\" data-id=\"83f27ac\" data-element_type=\"widget\" data-widget_type=\"html.default\"><span>\n<strong style=\"font-size: 1.2em\">\nHi, we are the <a href=\"https:\/\/mister.forex\/en\/about-us\/\" target=\"_blank\" style=\"text-decoration: underline\">Mr.Forex Research Team<\/a><\/strong><br>\n\nTrading requires not just the right mindset, but also useful tools and insights. We focus on global broker reviews, trading system setups (MT4 \/ MT5, EA, VPS), and practical forex basics. We personally teach you to master the \"operating manual\" of financial markets, building a professional trading environment from scratch.<br>\n<br>\n\n<strong>If you want to move from theory to practice:<\/strong><br>\n1. Help share this article to let more traders see the truth.<br>\n2. Read more articles related to <a href=\"https:\/\/mister.forex\/en\/category\/learn-forex\/\" target=\"_blank\">Forex Education<\/a>.\n<\/span><\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>A Must-Read Forex Quote Guide for Beginners! Understand the Difference Between the Buy Price (Ask) and Sell Price (Bid), Spread, and Order Placement Applications to Ensure You Trade Correctly Without Loss.<\/p>","protected":false},"author":1,"featured_media":44176,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,83],"tags":[128],"class_list":["post-53496","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-forex-terms","category-learn-forex","tag-no-google"],"_links":{"self":[{"href":"https:\/\/mister.forex\/en\/wp-json\/wp\/v2\/posts\/53496","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mister.forex\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mister.forex\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mister.forex\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mister.forex\/en\/wp-json\/wp\/v2\/comments?post=53496"}],"version-history":[{"count":0,"href":"https:\/\/mister.forex\/en\/wp-json\/wp\/v2\/posts\/53496\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mister.forex\/en\/wp-json\/wp\/v2\/media\/44176"}],"wp:attachment":[{"href":"https:\/\/mister.forex\/en\/wp-json\/wp\/v2\/media?parent=53496"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mister.forex\/en\/wp-json\/wp\/v2\/categories?post=53496"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mister.forex\/en\/wp-json\/wp\/v2\/tags?post=53496"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}