Bid Price/ASK Price/SPREAD

Bid Price

BID Price (Sell price) is the price where the dealers desire to buy BASE CURRENCY as the exchange with Quote CURRENCY. You can sell the currency for that price because the dealer wishes to buy it at the same time. As you can see the price was placed in SELL column.

Bid price is always lower than market value price for one currency pair. This is the distinction between bid price and spread that will be discussed shortly. Meaning, if you want to sell, your price is a few pips below actual market price.

ASK Price

ASK / BUY Price (Buy price) is the price where the "dealers" wish to sell BASE CURRENCY to exchange with you as Quote CURRENCY. Means this is the price given by the dealer to you if you want to buy one currency pair.

SPREAD

The different between BID and ASK price is called Spread.

Spread is different between one pair with another pair. It is also different among different brokers. I recommend you to choose a broker which provides smaller spread.

In the example above shows the EUR / USD pair.As discuss before Euro is BASE CURRENCY and USD is Quote Currencies. In the example above you may buy euros with the 1.3452 and at the same time you can sell the Euro by 1.3455.

Spread in this example is the distinction between BUY and SELL prices. In this example, the spread is $ 1.3452 USD - USD $ 1.3455 USD = $ 0.0003, or also known as 3 pip.

2.1 Explanation about bid and ask price