In plain English
What Ask price means
If EUR/USD is quoted at 1.0850/1.0852, the 1.0852 side is the ask. That is the price you pay to buy the base currency with the quote currency. In spot FX, the ask can move continuously as liquidity and order flow change.
Why it matters
The ask price determines your entry cost when you buy. Comparing ask quotes matters because a better ask means a lower purchase price. It also helps you separate the displayed quote from other trading costs, such as commission or financing.
Example
Simplified example: if GBP/USD is 1.2700/1.2703, the ask is 1.2703. Buying 10,000 GBP at that quote costs 12,703 USD before commission. If the quote later becomes 1.2710/1.2713, the new ask is 1.2713.
Quick answers
Common questions
Is the ask always higher than the bid?+
Yes. In a two-way quote, the ask is the sell price and the bid is the buy price, so the ask is normally higher than the bid.
Does paying the ask mean there are no other costs?+
No. Commission, swaps, and slippage can add to the cost even when the ask is quoted clearly.
Sources