Bid Price Ask Price and Market Orders — Market Fundamentals

Bid and Ask Explained

The bid price is what the market is willing to pay for a currency pair — it's the price at which you can sell. The ask price (sometimes called the offer) is what the market charges to sell you the pair — it's the price at which you can buy. The ask is always equal to or higher than the bid, with the difference forming the spread.

[Read the lesson: Bid Price, Ask Price, and Market Orders](/learn-to-trade/market-fundamentals/bid-price-ask-price-and-market-orders)

Placing a Market Order

A market order is an instruction to buy or sell immediately at the current available price. When you place a buy market order, your trade executes at the current ask price. When you place a sell market order, your trade executes at the current bid price.

**Which Price Applies?:** Quote: Bid 1.0848 / Ask 1.0850. A market buy order fills at 1.0850 (the ask). A market sell order fills at 1.0848 (the bid). This is why the position starts slightly 'behind' by the size of the spread.

[Read the lesson: Bid Price, Ask Price, and Market Orders](/learn-to-trade/market-fundamentals/bid-price-ask-price-and-market-orders)

Why This Matters Day to Day

Understanding bid and ask prevents confusion about why a newly opened trade sometimes shows a small paper loss immediately — it's simply reflecting the spread, not a mistake. Knowing this helps you set realistic expectations for how price needs to move to become profitable.

[Read the lesson: Bid Price, Ask Price, and Market Orders](/learn-to-trade/market-fundamentals/bid-price-ask-price-and-market-orders)