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What is a Spread?

This covers Bid and Ask price spread in trading.

Written by Nour A

The Spread is the difference between the Bid price (at which you sell)

and the Ask price (at which you buy), measured in pips. Sell orders open at the Bid and close at the Ask; Buy orders open at the Ask and close at the Bid. The spread is a cost of trading, incurred at the moment a position is opened.

Spreads at CMTrading depend on your account tier: Regular spreads on Basic, Plus spreads on Trader, and spreads as low as 1.9 pips on EUR/USD from the Gold tier upwards. See Account Types for details.

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