Last updated on
February 17, 2022

Spread, in general, refers to the difference between two prices, rates, or yields. The spread, therefore, is the difference between the bid and ask prices of a security or asset, such as a stock, bond, or commodity. This is referred to as a bid-ask spread.

The spread in forex trading is the difference between a currency pair's bid (sell) and ask (buy) prices. A currency pair always has two prices: the bid price and the ask price. The pairing indicates how much of the variable currency corresponds to one unit of the base currency.

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