Offer (Ask) is the price at which you buy a currency pair in forex trading. It represents what sellers are asking, and it's always higher than the bid price—the price at which you can sell. The difference between the two is called the spread, which is how brokers generate revenue on trades.
For example, if EUR/USD has a bid of 1.1995 and an ask (offer) of 1.2000, you buy at 1.2000 and sell at 1.1995, incurring a 5-pip spread. This spread fluctuates depending on market conditions and liquidity. Volatile or illiquid markets widen the spread, raising your trading costs.
Several factors affect ask prices beyond the basic spread. Slippage occurs when your executed price differs from the expected price due to rapid market movement. Some brokers advertise tight spreads but charge hidden commissions or fees. Always review total trading costs—spreads, commissions, and any other fees—when comparing brokers. Market liquidity directly impacts spread width: less liquid pairs have wider spreads.
