Historically, the concept of bid and ask started in the olden days, when merchants used the “bid and ask” concept to sell and buy goods.
“Bid” refers to the price that a buyer is willing to pay for that item. And, “Ask” or “Asking price” is the price that a seller accepts to sell his product.
So similarly, when it comes to the forex market.
Any currency has two prices.
The one to the left is the bid price, and the one to the right is the ask price.
The Bid price is the price that somebody is willing to pay for a currency if you need to sell it.
And the ask price is the price that someone will sell to you at if you wish to buy.
The difference between the bid and the ask price is called the spread. This is the fee that is taken by your broker as a commission. And it is charged whenever you open a new position.
You might not see the words “bid and ask” on some trading platforms. Often these words are replaced with the words “sell and buy”. “Sell” meaning “bid” and “buy” meaning “ask”.