In plain English
What Ask price means
A forex quote normally shows two prices. The ask is the price on the buying side from the customer’s perspective: it tells you how much quote currency is required to buy one unit of the base currency. It is generally higher than the bid price. Quotes can change rapidly, and a displayed ask is not necessarily a guarantee that a large order can be filled entirely at that price.
Why it matters
The ask price is the relevant starting price for a long position in a currency pair. Comparing it with the bid shows the immediate bid–ask spread, a transaction cost built into the quote. It also matters when checking an execution report: a buy order may fill at a different price if the market moves or the quoted quantity is unavailable.
Example
Suppose EUR/USD is quoted at 1.08420 / 1.08435. The ask is 1.08435, meaning that, in simplified terms, buying €1 costs US$1.08435. A market buy for EUR/USD is normally priced from that ask; the lower 1.08420 figure is the bid, not the price offered to the buyer.
Quick answers
Common questions
Is the ask price the price used to open every trade?+
No. It is normally the relevant side for buying a currency pair. Selling uses the bid. Limit orders, stop orders, partial fills, and market movement can produce an execution price different from the quote first displayed.
Why is the ask higher than the bid?+
The difference is the bid–ask spread. It reflects, among other things, the cost and risk of providing liquidity, and it varies by instrument, market conditions, and the size available at each price.
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