Module 2: Trading Fundamentals
Spread
4 min read
The spread is the gap between bid and ask, and it is paid on every trade.
How spread works
You buy at the higher ask price and sell at the lower bid price, so every new position starts slightly negative. The tighter the spread, the lower this cost.
Fixed vs variable
Most brokers offer variable spreads that widen during low liquidity, around major news, and at the daily rollover. Advertised "from" spreads are minimums, not averages.
Key takeaways
- Spread is a cost paid on entry.
- Spreads widen in thin or volatile markets.
- Compare typical spreads, not only minimums.
Educational content only, not financial advice. Trading forex and CFDs involves significant risk of loss.