The ask price (also called the offer price) is the minimum price at which a seller is willing to sell a financial instrument. When you buy a currency pair, you buy at the ask price.
How It Works
In a currency quote like EUR/USD 1.0850/1.0852:
- 1.0850 = Bid price (what buyers pay)
- 1.0852 = Ask price (what sellers want)
The difference between the two is the spread — the broker’s profit on the trade.
Example
If EUR/USD is quoted at 1.0850/1.0852:
- To buy EUR/USD, you enter at 1.0852 (ask)
- To sell EUR/USD, you enter at 1.0850 (bid)
Key Points
- The ask price is always higher than the bid price
- A tight spread (small difference) indicates high liquidity
- The ask price changes in real-time based on market conditions
- Understanding ask prices is essential for calculating trade entry costs