Don’t waste your time – keep track of how NFP affects the US dollar!

Data Collection Notice

We maintain a record of your data to run this website. By clicking the button, you agree to our Privacy Policy.

facebook logo with graphic

Join Us on Facebook

Stay on top of company updates, trading news, and so much more!

Thanks, I already follow your page!
forex book graphic

Beginner Forex Book

Your ultimate guide through the world of trading.

Get Forex Book

Check Your Inbox!

In our email, you will find the Forex 101 book. Just tap the button to get it!

FBS Mobile Personal Area

market's logo FREE - On the App Store

Get

Risk warning: ᏟᖴᎠs are complex instruments and come with a high risk of losing money rapidly due to leverage.

69.21% of retail investor accounts lose money when trading ᏟᖴᎠs with this provider.

You should consider whether you understand how ᏟᖴᎠs work and whether you can afford to take the high risk of losing your money.

LESSON 7. Bid and Ask price. Spread

The next terms we will study are Bid and Ask…

The next terms we will study are Bid and Ask. The price we pay to buy the pair is called Ask.

It is always slightly above the market price. The price, at which we sell the pair on Forex, is called Bid. It is always slightly below the market price.

The price we see on the chart is always a Bid price. Later on, we will find out how to check the Ask price in our trading platform.

Ask price is always higher than the Bid price by a few pips. The difference between these two prices is called spread.

Spread is commission we pay to our broker for every transaction. You’ve probably faced a similar logic in a bank exchanger: rates are always different for sellers and buyers.

For example, the EUR/USD Bid/Ask currency rates are 1.1250/1.1251.

You will buy the pair at higher Ask price of 1.1251 and sell it at a lower Bid price of 1.1250. This represents a spread of 1 pip.

The more popular is the currency pair, the smaller is the spread.

For example, spread for a EUR/USD transaction is usually very small or, as traders say, tight.

Note that the cost of spread on Forex is usually negligible in comparison with the expenses on the stock or options markets.

As spread is quoted in pips, a trader can easily calculate the cost of every trade by multiplying the spread in pips by the value of 1 pip.

You will learn to calculate the value of a pip from our next video.

Choose your payment system

Callback

Please fill in the form below so we can contact you

Select the best time for us to call you. We give calls from Monday to Friday in suggested intervals. In case we couldn't get through, we will try again at the same time the next day. For getting real-time assistance, use FBS chat.

We provide only English-speaking callbacks. If you prefer any other languages, contact the support team.

We will call you at the time interval that you chose

Change number

Your request is accepted.

We will call you at the time interval that you chose

Next callback request for this phone number will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later