Spread
Updated 2026-09-20
Definition
The difference between the buying price (ask) and the selling price (bid): the implicit cost of every trade.
Why it matters
It widens when liquidity is thin (night, rollover) or uncertainty is high (announcements). A trader who trades often on low timeframes pays a lot in spread: always compare it with the stop and the target.
Practical example
Bid 1.10000 and ask 1.10012: the spread is 1.2 pips. Opening at market you start 1.2 pips in the red.
Learn more
Course lesson: Currency pairs, bid, ask and spread: how to read a quoteRelated entries
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Educational content, not financial advice. Trading involves risk.