The spread is the difference between the Ask (buy) price and the Bid (sell) price of a trading instrument.
When you open a position, you buy at the Ask price or sell at the Bid price. As a result, a newly opened position may initially show an unrealised loss reflecting the spread. The market must move in your favour to cover the spread before the position reaches breakeven, assuming no other trading costs apply.
How it is calculated
Spread = Ask price − Bid price
If EUR/USD is quoted at 1.10250 / 1.10262:
- Bid (sell) price: 1.10250
- Ask (buy) price: 1.10262
- Spread: 0.00012, which is 1.2 pips
Spread on different account types
Different account types structure trading fees differently.
Account types may have different pricing structures. Some accounts offer lower spreads with a separate commission, while others may have wider spreads with no commission.
When comparing account types, consider the total trading cost, including the spread and any applicable commission.
Typical spreads by product group
Spreads vary depending on the trading instrument, account type, and market conditions.
For further details, please refer to this link: Spreads by products.
How to Check the Live spread
You can check the current spread directly on your trading platform.
For instructions on how to check live spreads on different devices, please refer to Check live spreads on different devices
