Glossary
Spread
Forex
The spread is the difference between the bid and ask price of an instrument, and it is the main trading cost on most forex and CFD accounts.
If EUR/USD is quoted 1.0850 / 1.0851, the spread is one pip. You buy at the ask and sell at the bid, so a position starts marginally negative by exactly the spread.
Spreads widen when liquidity thins — around major economic releases, at the daily rollover and during holiday sessions. Raw-spread accounts show near-zero spreads but charge a separate commission; standard accounts fold the cost into a wider spread. Comparing brokers means comparing spread plus commission on the pairs you actually trade.