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Bid Ask Buy Sell. That’s where the bid and ask price foreign exchange kicks in. The ask price is the lowest offered price at which someone is willing to sell the asset.
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In order for a transaction to occur, someone must either sell to the buyer at the lower (bid) price, or someone must buy from the sell at the higher (ask) price. The bid price refers to the highest price a buyer will pay for a security. Alternatively another bidder could put in a higher bid, at $10.51 or $10.53 for example.
Magnum Research, Inc. Desert Eagle .50 Caliber Semi Auto
The bid price is the current highest price that someone is willing to pay for one or more units of the security being traded, while the ask price is the current lowest price at which someone is willing to sell one or more units. If you want to buy a stock you can place an order at the bid price and hope that someone will sell to you, or you can place an order to buy at the ask price. But to answer your q. At the core of the bid/ask spread are the two different prices available in any market: