Definition
What is Spread?
The spread is the difference between the ask price (where you buy) and the bid price (where you sell) of an instrument.
Every trade starts slightly negative by the size of the spread: you buy at the higher ask and would close at the lower bid.
Spreads are usually tightest in liquid sessions such as the London–New York overlap and widen around news, at the daily rollover and on weekends for some markets.
For scalpers the spread is a large part of the cost per trade, so trading liquid hours matters.
Example
EURUSD bid 1.08000 / ask 1.08008: the spread is 0.8 pips, about $8 on one standard lot.
At a prop firm
The Axora Funded platform shows the live spread of every instrument in the watchlist.
Frequently asked questions
Why does my trade start in a loss?
Because you pay the spread when you open it.
When is the spread lowest?
Usually during the most liquid hours, like the London and New York sessions.