When you look at a forex quote you usually see two numbers. One of them is the ask price. In simple terms the ask is the price at which the market (or your broker) is willing to sell the base currency to you. Because trading always involves a buyer and a seller, the ask sits on one side of that trade; understanding it is essential for placing orders, calculating costs and managing risk.
The ask price in plain language
Think of the ask price as a shopkeeper’s price tag. If you want to buy one unit of the base currency in a currency pair you will pay the ask. The broker or liquidity provider is effectively saying “I will sell you EUR for 1.10754 USD,” for example. That number — the ask — is the lowest price a seller is currently willing to accept.
In a typical forex quote the ask is the higher of the two prices shown. The lower number is the bid, which is the price at which the market will buy the base currency from you. The difference between them is called the spread, and it represents an immediate cost to traders.
How ask, bid and spread work together
A live quote might look like this: EUR/USD 1.1000 / 1.1002. The first number (1.1000) is the bid and the second (1.1002) is the ask. If you place a market buy order you will enter at 1.1002; if you place a market sell order you will execute at 1.1000. The spread here is 0.0002, which is two pips.
Because you buy at the ask and sell at the bid, every trade starts with that spread as a built-in cost. For a standard lot of 100,000 units one pip for EUR/USD is typically worth about $10, so a two‑pip spread costs roughly $20 on a standard lot. For smaller lot sizes the dollar cost scales down accordingly.
Practical examples: placing orders and stops
Imagine you see EUR/USD at 1.10749 / 1.10754 and you want to buy one mini lot (10,000 units). Your buy will execute at the ask 1.10754. You place a take profit at 1.10854 and a stop loss at 1.10654. When you later close the trade your profit or loss will be calculated using the bid price (the price buyers pay). In this case you needed the market to move above the ask plus cover the spread before you started making a net gain.
The same mechanics apply to stop-loss and take-profit orders. If you open a sell position, execution happens at the bid price and the position is closed at the ask. That inverted flow is why it’s important to understand on which side of the spread your order will be filled.
Where the ask price comes from
The ask you see comes from liquidity providers — banks, large dealers and other market participants — and from your broker, which aggregates or sets quotes depending on its model. Brokers that operate as market makers usually include their margin in the quoted spread. Brokers that offer direct market access or ECN-type pricing may show narrower raw spreads but charge a separate commission.
Because multiple institutions quote prices, feeds can differ slightly between brokers and platforms. During calm, liquid conditions (major pairs during the London–New York overlap) spreads tend to be tight; in thin or fast-moving conditions (overnight, holiday hours, or high-impact news) spreads can widen quickly.
What moves the ask price
The ask moves for the same reasons any market price moves — changes in supply and demand. Liquidity, volatility, time of day and economic news all influence how high or low the ask will be. Major currency pairs typically have many competing buyers and sellers so asks (and bids) stay close together. Exotic pairs often show wider asks because fewer participants provide liquidity.
Brokers and liquidity providers may also deliberately widen asks around economic releases to protect against rapid adverse moves; this is a normal market behaviour, not necessarily a technical problem with your platform.
Display and charting considerations
Most trading platforms show both bid and ask somewhere on the screen, and many let you display an ask line on the chart. Price charts frequently plot the last traded price or the bid, so if you place buy orders remember your execution will be at the ask — which may be offset slightly from what the chart appears to show. For precise entries and stop placement it helps to check both bid and ask values rather than relying on a single displayed price.
Common mistakes traders make with the ask
Traders sometimes forget that buys happen at the ask and sells at the bid, and this leads to surprises: an apparent “breakeven” level on a chart may not be where a position will actually be filled because the spread was ignored. Scalpers and high-frequency traders are especially sensitive to the ask/bid difference because their profit targets are small and spreads can eat a large portion of expected gains. Another frequent error is trading illiquid or exotic pairs without checking how wide the ask can get in volatile conditions.
Risks and caveats
Trading forex carries risk and you can lose money. The ask price is part of the trading cost structure and can widen unexpectedly, particularly during news events or in illiquid hours; that can cause fills at worse prices than expected and increase losses. Broker pricing models differ: some embed costs inside wider spreads, others use raw spreads plus commissions — both are legitimate but affect how you compare trading costs. Platform data feeds may also lag or diverge between providers; if you see quotes that look inconsistent check with your broker before trading. This article is educational and not personalised trading advice; always consider your own circumstances and, if needed, seek independent guidance.
Key takeaways
- The ask is the price at which the market will sell the base currency to you; you buy at the ask and sell at the bid.
- The difference between ask and bid is the spread, an immediate cost on every trade.
- Ask levels change with liquidity, volatility, time of day and broker pricing models; check both bid and ask before placing orders.
- Trading carries risk; this information is educational and not personal financial advice.
References
- https://www.eightcap.com/labs/understanding-bid-and-ask-prices-in-fx-trading/
- https://www.forextime.com/education/videos/the-bid-and-ask-price-in-practice
- https://dailypriceaction.com/blog/bid-vs-ask/
- https://www.investopedia.com/articles/forex/090914/understanding-spread-retail-currency-exchange-rates.asp
- https://www.babypips.com/learn/forex/bid-and-ask-price-explained
- https://fiveable.me/key-terms/international-economics/ask-price