Spread

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.