What Is Spread in Forex Trading?
Spread is the difference between the Bid price and the Ask price of a currency pair.
Simple Example
EUR/USD:
Bid: 1.1050
Ask: 1.1052
Spread: 0.0002 = 2 pips
When you open a trade, the spread is one of the main trading costs you pay to the broker.
Easy Way to Remember
Ask − Bid = Spread
Buy → you enter at the Ask price
Sell → you enter at the Bid price
What Can Make Spread Wider?
High market volatility
Major economic news such as NFP
Low liquidity
Market opening/closing periods
Certain currency pairs
Broker/account conditions
ForexHub Tip:
Lower spread = lower entry cost, but always consider execution, commission, and overall trading conditions—not spread alone.
ForexHub — Trade Smarter. Trade with Structure.
Spread is the difference between the Bid price and the Ask price of a currency pair.
Simple Example
EUR/USD:
Bid: 1.1050
Ask: 1.1052
Spread: 0.0002 = 2 pips
When you open a trade, the spread is one of the main trading costs you pay to the broker.
Easy Way to Remember
Ask − Bid = Spread
Buy → you enter at the Ask price
Sell → you enter at the Bid price
What Can Make Spread Wider?High market volatility
Major economic news such as NFP
Low liquidity
Market opening/closing periods
Certain currency pairs
Broker/account conditions
ForexHub Tip:
Lower spread = lower entry cost, but always consider execution, commission, and overall trading conditions—not spread alone.
ForexHub — Trade Smarter. Trade with Structure.