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Dunn To PerfectionFoundation

Gold Foundations · Module 2: Understanding XAU/USD · Lesson 3

Bid and Ask Prices

Beginner 5 minLesson 8 of 29

Learning objectives

  • Define bid and ask
  • Explain which price you get when buying or selling

Two prices at once

The is the highest price a buyer is currently willing to pay. The (or offer) is the lowest price a seller is willing to accept. You buy at the ask and sell at the bid.

The 'price' shown on a chart is often the mid-point or the bid, depending on the platform.

Bid, ask and spread

Bid · you sell here

2,410.20

Spread

0.30

Ask · you buy here

2,410.50

Educational illustration · not a live price or trading recommendation

Key takeaways

  • Buy at the ask, sell at the bid.
  • Charts may show bid or mid prices.

Knowledge check

When you buy, you usually pay the…

Key terms · hover or tap for a definition

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