What is the spread and how it affects your trades

@founder · 19 set, 08:02

The spread is the difference between the bid price (where you can sell) and the ask price (where you can buy). It's the main cost of most trades, and you pay it the moment you open a position. Example: EUR/USD bid 1.1000, ask 1.1001 = 1 pip spread. Your trade starts 1 pip in the red and needs to move that far just to break even. Why it matters: - Scalpers with tight targets are hit hardest by wide spreads - Spreads widen around major news releases and during the rollover hour at the end of the New York session - Some brokers charge a raw spread plus a fixed commission per lot instead, so always compare the total cost Before choosing a strategy, check the typical spread of the pair at the time of day you trade. A setup with a 5 pip target and a 2 pip spread is a very different proposition from one with a 30 pip target. Note: educational content, not financial advice. Trading involves risk.