What is the Bid and Ask Spread?

All Forex quotes display two prices, the bid and the ask.

BID is the price of the base currency that the dealer is willing to pay in exchange for the quote currency. In simple words, the bid is the price at which you (trader) will sell. 

ASK is the price of the base currency at which the dealer is willing to sell in exchange for the quote currency. In simple words, the ask is the price at which you will buy.

Spread is the difference between the ask and the bid prices. In other words, it is the difference between the market maker’s “selling” price (to its clients) and the price the market maker “buys” it from its clients.

By the way, the BID is always lower than the ASK. The reason for this mystery is that the SPREAD (the difference between the bid and the ask prices) is how FOREX brokers get paid for their services without charging you with commissions or special fees.



a price offered to a trader to buy currency.


price offered to traders to sell currency.

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