What are bid and the ask (offer) prices?
The difference in pips between the bid and the ask (offer) price.
FOREX prices, or quotes, include a “Bid” and “Ask” similar to other financial products.
Bid is the price at which a trader is able to sell a currency pair.
The Bid price or sell price of a currency pair is always the lower price in a quote.
Ask, sometimes referred to as “Offer”, is then the price at which traders are able to buy a currency pair.
In other words, FOREX traders always buy at the high and sell at the low of a price quote.
The difference between the Bid and Ask is called the “Spread,” which is the Trader’s cost per trade or per transaction.
There are typically no additional broker commissions involved in trading the FOREX market, as there might be when trading other investment markets.