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Costs

Spread — definition & meaning

The gap between the bid and ask price — a built-in cost of trading.

The spread is the difference between the buy price (ask) and the sell price (bid). It is one of the main costs of trading: the moment you open a position, you are effectively down by the spread.

Spreads are usually measured in pips or points. Tighter spreads are cheaper for you, especially if you trade frequently. Spreads often widen during news events and outside main market hours when liquidity is thin.

The information on Trding.io is for general information only and is not investment advice. Trading involves a real risk of losing money, and most retail traders lose. Never trade money you cannot afford to lose.

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