Offer definition

Offer is the lowest price a seller will accept for an instrument, and it is the price at which you buy. It is also called the ask, the selling side of a two-way quote.

In a two-way quote the market shows a bid and an offer side by side. The bid is where you can sell, and the offer is where you can buy.

The offer always sits above the bid, because sellers want more than buyers will pay, and the gap between the two is the spread. Bid is the price you sell at; offer is the price you buy at, and you cross the spread each time you open a trade.

Offer Example

EUR/USD is quoted at:

Bid: 1.0850 Offer: 1.0852

To buy EUR/USD immediately, you buy at the offer of 1.0852. The 0.0002 gap between the bid and the offer is the spread, which on this pair is 2 pips.