Spread

Costs & Fees

The gap between the bid and ask price — the built-in cost of every forex trade, measured in pips.

The spread is the difference between the bid price (what you can sell at) and the ask price (what you can buy at) for a currency pair. It represents the primary cost of trading with most brokers and is usually measured in pips. A tighter spread means lower trading costs. Spreads widen during low-liquidity periods — such as major news releases or market opens and closes — and are typically narrower on major pairs like EUR/USD than on exotic pairs.

Related terms

Bid/Ask Lot Pip

More in Costs & Fees

Average vs Minimum Spread CFD Expiry and Rollover CFD Overnight Financing Commission per Lot Cost Drag Cost Per Million Cost to Break Even Currency Conversion Fee Deposit Bonus Deposit Fee Dormant Account Effective Spread

After Spread

CalculatorPip Value CalculatorWork out the dollar value of one pip for any lot size and pair — the base unit for sizing every forex trade.GuideSpreads, Commissions and the Real Cost of a TradeSpread, commission and swap are the three costs on every forex trade — what each one is, when spreads widen, and how to compare pricing fairly.

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