Bid Price and Ask Price in Forex: A Complete Guide

Introduction

In forex trading, every currency pair has two prices: the Bid Price and the Ask Price. These prices determine how trades are executed in the market. Understanding bid and ask prices is essential for every trader, especially beginners, because they directly affect profits and losses.

What Is Bid Price?

The Bid Price is the price at which the market (or broker) is willing to buy a currency pair from you.

If you want to sell, you sell at the bid price
It is always the lower price shown on the chart

Example:
EUR/USD = 1.1000 / 1.1003
👉 Bid Price = 1.1000

What Is Ask Price?

The Ask Price is the price at which the market (or broker) is willing to sell a currency pair to you.

If you want to buy, you buy at the ask price
It is always the higher price

Example:
EUR/USD = 1.1000 / 1.1003
👉 Ask Price = 1.1003

What Is Spread?

The Spread is the difference between the ask price and the bid price.

Formula:


Spread = Ask Price – Bid Price

Example:
1.1003 – 1.1000 = 0.0003 (3 pips)

This spread is the cost of trading paid to the broker. Explore more about Low Spreads broker with Pipze.

Why Bid and Ask Prices Matter

Trades open at a small loss because of the spread
Lower spreads mean lower trading costs
News events often increase spreads
Scalpers and day traders are highly affected by spreads

Bid & Ask Price in Buy and Sell Trades

Buy Trade:
- Entry at Ask Price
- Exit at Bid Price
Sell Trade:
- Entry at Bid Price
- Exit at Ask Price

This explains why price must move in your favor to cover the spread first.

Tips for Traders

Trade during high-liquidity sessions
Avoid trading during high-impact news if spreads widen
Choose brokers with low spreads
Always consider spread before placing a trade
For detailed information, and for more learning regarding forex market spread, open an account today with Pipze best forex trading platform for Latin American countries, Brazil, Oman, Qatar, Saudi Arabia, India, United Arab Emirates, and India in 2026-2027.