Bid and ask
Updated 2026-09-20
Definition
The bid is the price at which you can sell, the ask the price at which you can buy. The ask is always higher than the bid.
Why it matters
Charts usually show the bid price; a buy order fills at the ask and a sell stop triggers at the bid. Knowing which price touches what avoids surprises on stops.
Practical example
On a short trade the stop loss (a buy) executes at the ask: with a wide spread it can trigger earlier than the chart suggests.
Related entries
Want to compare notes with other traders?
Join the community to share ideas and questions, or the free signal room on Telegram.
Educational content, not financial advice. Trading involves risk.