The spread is the gap between the bid price and the ask price, and it is the cost of opening a trade at the quoted market. A new position starts at zero value and must move in its favour by roughly the spread before it shows a profit. Spreads are usually wider during quiet hours, around economic releases and on less-traded pairs, and they are often lower on majors such as EURUSD.
Forex glossary
Spread
Related term
Ask Price
The ask, sometimes called the offer, is the price at which the market will sell the base currency to you, so it is the price a buy order pays. It is always the…
Spotted an error or a missing nuance?
Definitions are written by us and corrected when we are told we are wrong. If your broker quotes differently — especially on gold — say so and we will record the assumption.