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In forex there are two main terms that you will need to be familiar with when it comes to dealing with a particular currency pair: the bid price and the ask price. The bid price is always associated with buying, and the ask is associated with selling.
The bid price is the current price level where the market is prepared to buy a specific currency pair. To make sure you never confuse bid and ask, think about eBay where you bid on items when you would like to buy them.
The difference between the bid price and the ask price is called the spread, and this is the amount of gain that you need on your open forex currency trading position before you can break even and begin to experience profits from the pips earned.
