Bid/Ask definition

The Bid or the selling price is the exchange rate at which a currency is offered for sale. The Ask or buying price is the exchange rate at which a currency can be bought.

In the example above the EUR/USD pair (Euro vs. US dollar) is quoted at 1.1034/1.1037. In other words, the quote for the EUR/USD pair is 1.1034/1.1037, where 1.1034 is the Bid price and 1.1037 is the Ask price. Meaning if you wish to sell the quoted currency – in this case the Euro – then you would receive 1.1034 US Dollars per 1 Euro. On the other hand, if you were buying the quoted currency, then the quote tells you that to buy Euros for US dollars, you would need to pay 1.1037 dollars per 1 euro.


Related words

Base CurrencyBalance of PaymentsBar ChartBig FigureBretton Woods AgreementBack officeBondsBrokerBID / ASKBalanced FundBalanced investment strategyBackpricingBackwardationBear SpreadBear Vertical SpreadBozuBreakaway gap