Step by step
How to read it
- 1The bid: what you get when you sell. Most charts draw it.
- 2The ask: what you pay when you buy.
- 3Buy and sell at once and you lose the gap. Every trade starts this far behind.
Watch out
Common mistake
Ignoring the spread on short trades. On a 10-pip target, a 2-pip spread is a fifth of it.
Hypothetical numbers
Worked example
- Example: spread 1.5 pips on EUR/USD, 1 lot ≈ 15 USD,
- paid the moment you open. It can widen around news and in quiet hours.
In one line
Definition
The difference between the ask and the bid — a cost paid on every trade.
Check yourself
Check yourself
The spread is 2 pips. You buy, and the bid rises 2 pips. Your result before other costs?