All lessons
Bid, ask and spread
Buying and selling can have different prices at the very same moment. That gap belongs in your calculation.
Read executable prices and calculate the immediate cost of crossing a spread.
The bid is the price at which you can normally sell the base currency; the ask is the price at which you can buy it. The ask is usually higher. Their difference is the spread, one part of trading cost.
A chart may show bid, ask, last or midpoint prices. Check which one before deciding why an order triggered. A buy enters at ask and typically exits at bid; a sell enters at bid and typically exits at ask.
Spreads can widen when liquidity is limited or news arrives. Commission and financing can apply separately. A quote does not guarantee your entire order can execute at that price; available size, speed and venue rules also matter.
Let’s use numbers · hypothetical example
EUR/USD is 1.0830 bid and 1.0832 ask. Buying EUR 10,000 and immediately selling at unchanged quotes loses USD 2: 10,000 × 0.0002, before other fees.
Keep in mind
A narrow advertised minimum spread is not necessarily the spread available when you trade.
Your turn
Record three simulated bid/ask pairs, calculate each difference and note whether the chart displays bid or midpoint.
A quick check before we move on
Which price normally applies when buying the base currency?
- Bid
- The average is always guaranteed
- Ask
Check answer
Ask Buying crosses to the offered ask. The midpoint may be a reference rather than an executable price.
Sources and further reading
Content reviewed: 29 October 2026
Educational material with hypothetical examples. Trading can cause substantial losses. A course, pattern, stop order or past result cannot guarantee a profit or limit every loss. Practise in simulation and check current rules and product terms in your jurisdiction.
