Reading a Forex Quote - Bid, Ask & Spread
Open any trading platform and you’ll see something like EUR/USD 1.0948 / 1.0950.
That tiny line packs a lot of info! Let’s decode it together so you can place orders
with confidence (and avoid rookie “fat-finger” mistakes 🖐️).
Base vs. Quote Currency
In EUR/USD, EUR is the base;
USD is the quote. A price of 1.0950 means
1 EUR = 1.0950 USD.
Bid vs. Ask
Bid = price your broker buys from you.
Ask = price you’ll pay to buy from them.
Think of the broker as a used-car dealer: one price to buy your car,
a slightly higher one to sell you theirs 🚗.
Spread = Broker’s Tip Jar
Spread = Ask – Bid. On majors it can be as low as
0.1 pip during London/NY overlap; wider on exotics or after-hours.
It’s effectively your up-front cost to open the trade.
Putting It All Together
| Pair | Bid | Ask | Spread (pips) |
|---|---|---|---|
| EUR/USD | 1.0948 | 1.0950 | 0.2 |
| GBP/JPY | 203.456 | 203.483 | 2.7 |
| USD/TRY | 33.102 | 33.152 | 5.0 |
Notice how exotic pairs (like USD/TRY) carry a bigger spread and
sometimes fewer decimal places. Always check costs before hitting “Buy”!
🔢 Pip value cheat-sheet: On EUR/USD, one Standard Lot
(100 k units) = $10 per pip. So a 0.2-pip spread ≈ $2
round-turn cost. Budget that into your risk numbers!
EUR/USD 1.0948 / 1.0950
└─ Bid └─ Ask
↑ sell ↑ buy
Spread = 0.0002 = 0.2 pip