Forex costs
The spread is one of the first forex costs to understand because it affects a trade before price even moves.
Use these sections as a short research path before opening related articles, glossary terms or broker tools.
The bid is the price at which a broker may buy from you. The ask is the price at which a broker may sell to you.
Forex spreads are often quoted in pips. A pip value depends on the currency pair, lot size and account currency.
Spreads can widen during low liquidity, news releases, market opens and broker-specific stress.
A repeatable process is more useful than a one-time conclusion.
Check whether the spread is for a major, minor or exotic currency pair.
Use lot size and pip value to estimate the actual cost of entering a trade.
If the account charges commission, include it beside the spread.
Review spreads during the sessions when you expect to trade.
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Use these definitions to check the vocabulary behind the guide.
Short answers to common questions about this topic.
It is the difference between the broker's buy quote and sell quote for a currency pair.
Spreads can widen when liquidity is lower, volatility is higher or news changes market conditions.
Not necessarily. Zero or low spread accounts often charge commission or have other account costs.
