Definition of Spread
The difference between the bid and ask price of a currency pair. It represents the broker's transaction cost. For example, if EUR/USD bid is 1.1000 and ask is 1.1002, the spread is 2 pips.
At a glance
Term
Spread
URL slug
spread
Category
Trading costs
Short answer
The difference between the bid and ask price of a currency pair.
Deep dives
/guide/what-is-spread/, /tools/pip-value-calculator/, /blog/lowest-spread-forex-brokers-2026/
Example
Example: a 1.2-pip spread plus commission equal to 0.6 pip is ~1.8 pips of entry cost. Put “Spread” into the R:R math before judging a strategy.
Common mistake
Common mistake: ranking brokers on teaser “from” prices without measuring “Spread” on the same session and symbol.
Professional tip
Tip: log “Spread” at London–New York overlap and at quiet hours — the gap shows true strategy cost.
Related deep dives
Practice tools:
Related terms
FAQ
The difference between the bid and ask price of a currency pair.
All-in cost (spread, commission, financing) often hinges on “Spread”. Skipping it distorts profit/loss expectations.
Common mistake: ranking brokers on teaser “from” prices without measuring “Spread” on the same session and symbol.