LESSON 05 ~11 MIN · AT YOUR OWN PACE
How does a trade work?
Brokers, Buy/Sell, Bid/Ask, Orders and trading costs.
STEP 2 OF 4
Bid, Ask and Spread
Ask is usually the price you buy at. Bid is usually the price you sell at. The difference between the two is the Spread. Even if the screen shows one price, the actual buy and sell quotes can differ.
AN EXAMPLE
Bid is 99.80 and Ask is 100.00. If you buy at the Ask and sell straight away at the Bid, you lose 0.20 per unit, before other fees.
RememberThe Spread is a cost too. Even if the price does not move, a trade is not free.
Sources and further reading
Sources in English · Content reviewed on 28 September 2026. We made the examples for learning; they are not broker recommendations.
Investor.gov · Order types (opens in a new tab)CFTC · Forex and risk (opens in a new tab)