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What is Spread?
Spread refers to the difference between the Ask price and the Bid price. It represents one of the trading costs traders incur when opening a position.
• The tighter the spread, the lower the trading cost.
• Spreads exist in all CFD trading, including Forex, Gold, Indices, and Cryptocurrencies.
🚀 For example:
EUR/USD quote is 1.1700 / 1.1702
• 1.1700 = Bid Price
• 1.1702 = Ask Price
Spread = 1.1702 - 1.1700 = 0.0002 = 2 pips
This means:
• If you buy EUR/USD immediately, your opening price is 1.1702.
• If you sell immediately, it will be executed at 1.1700.
You will immediately have a floating loss of 2 pips, which is the spread cost.
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⚠️ Note: The above spread statistics are for reference only. Spreads may vary with market conditions and liquidity provider quotes.
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