Ask Price in Forex — Meaning, Example, and How It Works
Ask Price in Forex — Definition, Example, and How Traders Use It
Clear explanation • Practical example • Common mistakes • Quick FAQ
Definition
The ask price (also called the offer price) is the price at which the market or your broker is willing to sell a currency pair. If you want to buy the pair right now, you pay the ask price.
How Ask Relates to Bid and Spread
- Bid = price the market will buy from you (you sell at the bid).
- Ask = price the market will sell to you (you buy at the ask).
- Spread = Ask − Bid. This is the broker’s visible cost for instant execution.
Example
Current EUR/USD quote: 1.1050 / 1.1052
- Bid = 1.1050 → if you sell EUR/USD, you get 1.1050.
- Ask = 1.1052 → if you buy EUR/USD, you pay 1.1052.
- Spread = 0.0002 = 2 pips.
Why Ask Matters for Traders
– Determines the entry cost when you buy.
– In fast markets the ask can move quickly, causing slippage on market buy orders.
– Buy entries are recorded at the ask price, sell exits at the bid price.
Practical Tips
- Check spreads during your trading session — the ask and bid can widen during news or low liquidity.
- Limit buy orders can help you avoid paying the full ask if price retraces.
- In volatile markets, use limit orders to avoid slippage.
Common Mistakes
- Confusing ask with bid.
- Ignoring the spread cost.
- Assuming spreads never change.
Quick FAQ
Q: Do retail traders always pay the ask when buying?
A: Yes for immediate market buys. Limit orders can sometimes get a better price.
Q: Is the ask price the same across all brokers?
A: No. Quotes and spreads vary based on liquidity providers and broker policies.
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