The bid is the highest price a buyer is willing to pay for an instrument, and the ask (or offer) is the lowest price a seller is willing to accept. The difference between the two is the spread. When you sell, you receive the bid price; when you buy, you pay the ask price. Bid and ask prices are continuously updated based on supply and demand.
EUR/USD is quoted at 1.1050 (bid) / 1.1052 (ask). If you open a buy trade, you enter at the ask price of 1.1052. If you immediately close it, you exit at the bid of 1.1050 — the 2-pip difference is the spread cost.
Ready to trade?
A-Book execution, 100+ instruments, and 24/5 multilingual support.