Spread
Definition
The spread is the difference between the bid price (what buyers are willing to pay) and the ask price (what sellers are asking for) of a currency pair. It represents the cost of trading and varies by broker and market conditions.
Example
If EUR/USD shows a bid of 1.1050 and an ask of 1.1052, the spread is 2 pips. Tighter spreads mean lower trading costs.
Tags
Related Terms
Bid Price
ForexThe bid price is the highest price that buyers are willing to pay for a currency pair. It's the pric...
Ask Price
ForexThe ask price (or offer price) is the lowest price that sellers are willing to accept for a currency...
Pip
ForexA pip (percentage in point or price interest point) is the smallest price movement in a currency pai...
Liquidity
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