What is Bid and Ask Price?

Bid price is the price a forex trader is willing to sell a currency pair for and ask price is the price a trader will buy a currency pair at! Both of these prices are given in real time and are constantly updating.

 

For example, the British Pound price against the US Dollar has a bid price of 1.20720. That's the price a trader wants to sell the Pound US Dollar.

 

For example, a seller who thinks the currency will decline might sell it at bid price to take an advantage of the falling price. If the British Pound against the US Dollar has an ask price of 1.20740, that is the price a trader wants to pay in order to buy the currency pair.

 

The difference between the Ask and the Bid price, is the Spread.

 

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