What are BID and ASK in Trading?

BID (Offer):

• The BID price is the highest price a buyer is willing to pay for an asset.
• When you want to sell an asset, you receive the BID price.

ASK (Demand):

• The ASK price is the lowest price a seller is willing to accept for an asset.
• When you want to buy an asset, you pay the ASK price.

Purpose

Difference Between BID and ASK (Spread):

• The difference between the BID price and the ASK price is known as the spread. The spread is a measure of market liquidity and volatility. A narrow spread indicates a liquid market with low volatility, while a wide spread may indicate the opposite.

Order Execution:

• When you place a buy order, it is executed at the ASK price. When you place a sell order, it is executed at the BID price.

How to Display BID and ASK in MetaTrader 4 (MT4) and MetaTrader 5 (MT5)

In MetaTrader 4 (MT4):

Display BID and ASK Lines on the Chart:

1. Open the MT4 platform.
2. Go to the chart of the desired financial instrument.
3. Right-click on the chart and select "Properties" or press F8.
4. In the properties window, go to the "Common" tab.
5. Check the boxes for "Show ASK line" and "Show BID line" (if available).
6. Click "OK".

View BID and ASK Prices in the "Market Watch" Window:

1. In the "Market Watch" window (press Ctrl+M if not visible), you can see the BID and ASK prices in real-time.
2. If you don't see both columns, right-click anywhere within the "Market Watch" window, select "Columns", and then "Ask".

In MetaTrader 5 (MT5):

Display BID and ASK Lines on the Chart:

1. Open the MT5 platform.
2. Go to the chart of the desired financial instrument.
3. Right-click on the chart and select "Properties" or press F8.
4. In the properties window, go to the "Show" tab.
5. Check the boxes for "Show ASK line" and "Show BID line" (if available).
6. Click "OK".

View BID and ASK Prices in the "Market Watch" Window:

1. In the "Market Watch" window (press Ctrl+M if not visible), you can see the BID and ASK prices in real-time.
2. If you don't see both columns, right-click anywhere within the "Market Watch" window, select "Columns", and then "Ask".

These steps will allow you to view and utilize BID and ASK prices in your trading operations, facilitating informed decision-making in the market.