Have you ever looked at a Forex chart and heard someone say, “Check the Top of Book”?

It sounds like a somehow, right? But don’t worry, you’re not alone. 

Many people see terms like this and feel confused. What does it really mean? Is it something only experts understand? Or is it something you need to know if you want to trade Forex like a pro?

This term may sound like it belongs in a library, but in Forex, it’s something much more exciting. 

If you’re just starting in the Forex world, understanding “Top of Book” can help you make smarter decisions, avoid mistakes, and feel more confident when trading.

What is Top of Book in Forex?

In Forex, the top of the book means the best available prices at a given time. These are the highest bid price and the lowest ask price in the market for a currency pair.

Let’s explain this step-by-step.

And also say you’re at the Market…

Let’s say you go to a market to buy mangoes. There are many sellers with different prices. One seller offers to sell you a mango for ₦300, while another person says they’re willing to buy a mango for ₦250.

• The ₦300 is the lowest price someone is willing to sell, that’s the ask price.
• The ₦250 is the highest price someone is willing to buy; that’s the bid price.

Now, when we talk about the Top of Book in Forex, we’re talking about the same idea, but instead of mangoes, it’s currency pairs like EUR/USD, GBP/JPY, or USD/NGN.

Top of Book = Best Bid and Best Ask

So, in Forex:

• Best Bid = the highest price buyers are ready to pay
• Best Ask = the lowest price that sellers are ready to accept

The Top of the Book shows you the two best prices at that moment.

Why Does “Top of Book” Matter in Forex?

The Forex market moves fast. Knowing the Top of the Book helps you

• Understand real market prices
• Place better buy or sell orders
• Know what other traders are willing to pay or receive
• Avoid entering a bad trade because you didn’t see the current best price

Where Can You See the Top of the Book?

You can see the top of the book inside your Forex trading platform (like MetaTrader 4/5, cTrader, etc.), usually in something called the depth of market (DOM) or level 1 market data. This shows you the current best bid and ask prices for a currency pair.

It’s like a live update of who’s ready to buy and who’s ready to sell, and at what price.

Conclusion

The Top of the Book is your window into what’s happening right now in the Forex market. It’s like standing at the front of the crowd, seeing the best deals first. 

Once you understand it, trading becomes clearer and less confusing.

You don’t need to be a pro. You just need the right explanation, and now, you’ve got it.