AlgoVesta › Glossary › Bid/ask

Forex & MetaTrader

Bid/ask

The bid is the highest price a buyer is currently willing to pay and the ask (or offer) is the lowest price a seller is willing to accept; a market buy fills at the ask, a market sell fills at the bid, and the gap between them is the spread.

Why it matters

Every round trip crosses the spread twice, so a trade is slightly negative the moment it opens. In forex the distinction also decides which price triggers your orders: on a long, the stop-loss and take-profit are evaluated against the bid, on a short against the ask, so a stop placed "at" a chart level that shows the bid can trigger a few pips early on a short. Signal prices are usually quoted as a single number, which is normally the bid or the mid, and the fill you get on a market buy is the ask.

How AlgoVesta handles it

AlgoVesta records the actual fill price from the venue, which already reflects the bid or ask side, and derives pip- or percent-based stops and targets from that fill rather than from the signal's single number, so the protection sits at the intended distance from where you really entered. On MetaTrader 5, live quotes are read from the terminal, and a spread check can block a signal when the current spread is wider than a limit you set, which is the typical situation at news or at market open. Positions and quotes shown in the dashboard come from the venue without rounding. On crypto exchanges, orders are placed against the live order book and the fill is reported by the exchange. See spread and Forex on MetaTrader.

Example

EURUSD shows bid 1.08500 and ask 1.08512. A signal says "BUY 1.0850, SL 1.0830". The market buy fills at the ask, 1.08512; AlgoVesta places the stop 20 pips below that fill at 1.08312. If the trader had placed the stop at 1.08300 from the signal price, the effective risk would have been 21.2 pips, not 20.

Common mistakes

In practice

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