Spread
Spread — The difference between bid (sell) and ask (buy) prices — the broker's implicit fee on every trade.
- Quick definition: The difference between bid (sell) and ask (buy) prices — the broker's implicit fee on every trade.
- Category: Forex Basics
Full Definition
Spread is the immediate cost of opening a position. EURUSD might quote 1.0823 / 1.0824 — that 1-pip difference is the spread. On a standard lot, that's $10 cost just to open. Tight spreads matter most for scalpers who trade frequently. Prop firms with raw spread accounts (typical with 1:100 leverage) charge spread + commission, which is usually cheaper than spread-only accounts.
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