Spread

The spread is the difference between the buy price (offer) and the sell price (bid) quoted for an asset. It is a key cost of entering a trade and plays a central role in both spread betting and CFD trading. A narrower spread means lower costs for entering and exiting positions, while a wider spread increases trading costs.

The spread is calculated by subtracting the bid price from the offer price.

For example, if EUR/USD is quoted at 1.1050/1.1052, the spread is 2 pips.

The size of the spread can change depending on market liquidity, volatility, and the asset being traded.

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