In Guide to Forex 2026, Bid Price, Ask Price, and Spread are three must-know for anyone starting Forex trading.
Think of them like buying and selling prices at a shop — very simple and very important .
This guide explains everything in easy, so even a child can understand.
What Are Bid Price and Ask Price?
What Is Bid Price?
The Bid Price is the buying price.
- It is the price the market is willing to buy a currency from you
- When you sell, you sell at the Bid Price
👉 Simple example:
If you want to sell USD, the Bid Price is the price someone is willing to pay to buy your USD.
What Is Ask Price?
The Ask Price is the selling price.
- It is the price the market is willing to sell a currency to you
- When you buy, you buy at the Ask Price
👉 Simple example:
If you want to buy USD, the Ask Price is the price you must pay to get USD.
What Is Spread in Forex?
The Spread is the difference between the Ask Price and the Bid Price.
- Spread = Ask Price – Bid Price
- It is the cost of trading in the Forex market
👉 Easy way to understand:
- You buy at a higher price
- You sell at a lower price
- The gap between them is the Spread
Why Is Spread Important?
In Guide to Forex 2026, spread matters because it directly affects your profit.
Key points to remember:
- Lower spread = lower trading cost
- Higher spread = higher trading cost
- Spread affects every trade you open
More things beginners should know:
- Major currency pairs usually have low spreads
- Cross and exotic pairs usually have higher spreads
- Different Forex brokers offer different spreads
- Some brokers have fixed spreads, others have floating spreads
👉 That’s why choosing the right broker is an important part of Guide to Forex 2026.
Quick Summary for Beginners (Guide to Forex 2026)
- Bid Price: the price you sell
- Ask Price: the price you buy
- Spread: the trading cost (Ask – Bid)
- Lower spread = cheaper trading
- Always check the spread before entering a trade
