Skip to content
Dunn To PerfectionFoundation

Gold Trading & XAU/USD · Module 1: Market Mechanics · Lesson 4

Bid / Ask in Practice

Intermediate 6 minLesson 4 of 15

Learning objectives

  • Explain bid / ask in practice in plain language
  • Understand why it matters to markets
  • Recognise a common misconception

The concept

Every trade crosses the : buyers pay the , sellers receive the . Chart lines usually show only one of these.

Why it matters

A stop placed at a chart level can be triggered by the ask or bid even if the chart line did not touch it.

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

How markets interpret it

Traders account for spread when planning entries, stops, and targets.

Key takeaways

  • Buy orders fill at the ask; sell orders at the bid.
  • Charts often show bid prices only.

Knowledge check

A sell stop is usually triggered by…

Key terms · hover or tap for a definition

Sign in free to mark lessons complete, save them, and track your progress.