Spread
fundamentalsThe 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.
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