IC Markets
3:09
2:39
2:10
2:18
3:43
8:42
Bid and Ask in Forex Explained
2:19 · 7 chapters · Forex lessons, part 24
What you'll learn
You buy at the ask and sell at the bid, so every trade starts a little in the red. Here's why the spread matters.
Go further with our written guide on this topic, browse all the free Learn Forex lessons, or check today's market in our forex news.
- Key point 1
- What the bid and ask prices mean in a forex quote
- Key point 2
- Why every new trade opens slightly in the red
- Key point 3
- Why the mid price on a chart is not a price you can trade at
- Key point 4
- What makes the spread wider: quiet hours, news and exotic pairs
- Key point 5
- How to compare the spread with your target before you enter
Rules and limits from regulators and official sources; every price, account and chart in the video is an example. Education, not financial advice.
More forex lessons
The video is presented by an animated host with a computer-generated voice; the research and checks are by the FX Recap team. Risk warning: forex and CFD trading carries a high risk of losing money because of leverage, and most retail accounts lose money. This is education and review, not financial advice. FX Recap may earn a commission from some broker links; see our affiliate disclosure.