Forex basics
What is the spread in forex trading?
The spread is the small gap between the price you can buy at and the price you can sell at. It is a cost you pay on every trade.
Every pair has two prices. The bid is what buyers will pay you. The ask is what sellers want from you. The ask is a little higher.
Because you buy at the higher price and sell at the lower one, every new trade starts a tiny bit behind. That gap is the spread.
Spreads are usually smaller on busy pairs like EUR/USD and bigger on quiet pairs or during big news.
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This is taught in Grade 1: Market Basics.
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Reviewed 2026-10-04. Education only, not financial advice. Trading involves risk of loss.