In Forex: How are spread costs calculated between buy and sell prices?

Asked 4 years ago

I'm trying to grasp the concepts in trading, and I'm feeling particularly stuck on spreads. (Basics, I know!) Is the spread cost the midpoint between the buy and sell price? Or am I misunderstanding the concept?

SpreadSpread costForex trading

Osasere Okunloye

Monday, August 09, 2021

In market situations, the spread is the difference between the buy and sell prices in pips. To get the spread, you subtract the bid price from the ask price. For example, if you are trading GBP/USD at 1.3087/1.309, the spread is 1.309-1.3097 which is 0.003 (3 pips).

Write an answer...

Cancel

Please follow our  Community Guidelines

Related Articles

The Best Trading Platforms for Beginners and Professionals

The Best Trading Platforms for Beginners and Professionals

Sofia Thai

April 23, 2021

FXAIX vs. VOO ETF Comparison: Fees, Performance, and Risks

FXAIX vs. VOO ETF Comparison: Fees, Performance, and Risks

Andrew Moran

December 23, 2024

Best Indicators for Forex Day Trading

Best Indicators for Forex Day Trading

Filip Dimkovski

December 23, 2024

Related Posts

Can't find what you're looking for?