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).

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