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Bid / Ask

By Jarosław Wasiński • Published: • Updated:
A two-way quote showing the bid, where the base currency can be sold, and the ask, where it can be bought, subject to available size and execution terms. Ask minus bid is the spread. Charts may display bid, ask, midpoint or another price, so check the feed before comparing a chart with an order fill.
Example.

A hypothetical EUR/USD quote is 1.08500/1.08520: Bid/Ask, in USD per EUR. You buy 0.10 lot, with a contract size of EUR 100,000 per lot, at the Ask of 1.08520 and immediately sell at the unchanged Bid of 1.08500. The 0.00020 difference is 2 pips, giving a price P&L of −USD 2: EUR 10,000 × (1.08500 − 1.08520) USD/EUR. Commission is excluded. The spread is already embedded in these execution prices; do not deduct it again.

Two price sides and four operations

In a conventional two-way base-currency quote, purchases use the Ask and sales use the Bid. A long position therefore opens with a purchase and closes with a sale; a short opens with a sale and closes with a purchase. The phrase “buy price” can be ambiguous unless the buyer’s identity is clear. Bid and Ask, together with the transaction direction, resolve this ambiguity. Also check the quote currency and the exchange-rate unit.

Chart prices, triggers and execution

A Bid candle does not contain the complete Ask history. A widening spread can cause the Ask to reach a level that the Bid has not reached. Compare a trigger with the correct price side under the order specification, then check the confirmed execution price separately. During a release or gap, a previously displayed quote may not be available for the entire order. A backtest must model these distinctions rather than equating the candle close with a fill.

Checking the cost of a transaction

Record the quote time, both prices, order size, fill price and commission. Do not compare one provider’s chart with another provider’s execution without explaining the feeds. Spreads vary, and available size can be limited. A narrow Bid/Ask difference alone does not establish a lower total cost: slippage, commissions and holding terms also matter. A negative valuation immediately after opening can reflect the price available to close on the opposite side of the quote.

Further learning and sources

2.3 FX quotations, bid/ask and cross rates — how to read Forex prices; 2.7 Forex order types and execution modes.

Primary sources (checked 2026-10-11): MQL5 Reference — Symbol properties; MetaTrader 5 Help — Executing trades.

Diagram and worked example

Educational infographic: Bid / Ask
Educational diagram; model data and assumptions are stated in the graphic.
Open the full-size graphic

FAQ

Does Ask mean the price at which I sell?
No. The Ask is the quoting party’s sale offer; in conventional FX quoting, the client buys the base currency at the Ask.
Should I deduct the spread again from Ask-to-Bid P&L?
No, when P&L uses the actual entry and exit prices. Include separately any costs absent from those prices, such as commission.

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Jarosław Wasiński

Editor-in-chief, ForexMechanics.com • Macro & FX analyst

Independent analyst and practitioner with over 20 years of experience in financial markets. Actively involved in Forex since 2007, with a focus on fundamental analysis, OTC market structure, and disciplined capital risk management.

  • Creator and editor-in-chief of MyBank.pl, providing reliable financial education since 2004.
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All content is educational and informational only – it does not constitute investment advice or a recommendation. Remember: leveraged trading (Forex/CFD) carries a high risk of rapid capital loss.