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What is Spread?

Updated October 17, 2026

The spread is the gap between the buy price and the sell price, and it's a main cost of trading.

Every pair has two prices. You buy at the ask and sell at the bid. The difference is the spread.

That's why a new trade starts slightly negative. Price has to move past the spread before you're in profit.

Spreads get wider during news and quiet hours. Scalpers and bots that trade often feel spreads the most.

Example

EURUSD bid is 1.08500 and ask is 1.08512, so the spread is 1.2 pips.

Questions people ask

What's a good spread?

On major pairs, under 1 to 1.5 pips is common at good brokers during busy hours.

Why did my spread jump?

News releases, rollover time and low liquidity all widen spreads.

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