Definition of Ask (Offer) Price: The ask offer price is defined as the price that one must pay for getting the thing known as “Base” currency. Dealing with the currencies can be a bit confusing at the beginning as one has to handle a pair of currency. The initial currency in this pair is called as base currency. The next currency in this pair is regarded as the counter currency or quote currency. Quotation can be described as several units of the quote currency which are needed to purchase a particular base currency. The quote designed for a currency pair generally consists of two costs, much as with the traded stocks on exchange. The Bid is generally less than the Ask offer. It can be defined as the cost at which a dealer wants to purchase the base currency by exchanging the quote or counter currency. Ask (offer) is generally higher than the Bid. It can be explained as the cost in which a broker wants to vend the base currency by exchanging the counter currency. If the offer cost for a pair of EUR or USD is fixed at 1.2750 and as the suggested cost is about 1.2752, the dissimilarity between both the prices is known as “spread”. Most of the Forex brokers obtain the trading gains from this difference, so it is helpful to review the difference prior to transacting trades. Here, one would have to make a payment of about $1.2752 to attain one Euro.
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