The ask price is the lowest price a seller accepts to sell a financial instrument, while the bid price is the highest price a buyer is willing to pay.
Ask price vs bid price
| Price type | Meaning | Used when |
|---|---|---|
| Ask price | The price at which you can buy a product. | Opening a buy position or closing a sell position. |
| Bid price | The price at which you can sell a product. | Opening a sell position or closing a buy position. |
Simple explanation
| Action | Price used |
|---|---|
| Buy a CFD | Ask price |
| Sell a CFD | Bid price |
| Close a buy position | Bid price |
| Close a sell position | Ask price |
Important notes
- The ask price is usually higher than the bid price.
- The difference between the ask and bid price is called the spread.
- MT5 charts usually show the bid price by default.
- The ask price line can be enabled in chart settings if needed.