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Order Types

Bid-Ask Spread

Definition

The difference between the bid and ask prices. Represents the cost of executing a trade and the market maker's profit.

Why Bid-Ask Spread Matters to Traders

Choosing the right order type is the difference between getting filled at your price and slipping into a bad entry. Bid-Ask Spread is one of the tools that gives you that control.

Example

EUR/USD with a bid of 1.0748 and ask of 1.0750 has a 2-pip spread.

How to Use Bid-Ask Spread in Live Trading

Bid-Ask Spread — Frequently Asked Questions

What does Bid-Ask Spread mean in trading?
Bid-Ask Spread refers to The difference between the bid and ask prices. Represents the cost of executing a trade and the market maker's profit. It is a order types concept that traders use when reading price action and managing risk on forex, gold, indices, and crypto markets.
Is Bid-Ask Spread important for beginners?
Yes. Bid-Ask Spread is one of the foundational order types concepts every retail trader should understand before placing real-money trades. SignalPro covers Bid-Ask Spread both in the free Trading School lessons and in the AI-generated signal explanations.
How do professional traders use Bid-Ask Spread?
Professional and institutional traders treat Bid-Ask Spread as one input in a confluence — never a standalone signal. They combine it with higher-timeframe market structure, liquidity analysis, and strict 1% risk-per-trade sizing to produce repeatable results.
Where can I see Bid-Ask Spread applied to live trades?
SignalPro's AI signal feed and chart-analysis tools call out Bid-Ask Spread setups in real time on EUR/USD, XAU/USD (gold), GBP/USD, USD/JPY, BTC/USD, and 23 other instruments. Free signals include the same reasoning as Premium so you can learn while you trade.

Related Terms

BidAskSpreadLiquidityMarket Maker
Reviewed by Daniel Godwin (RiffleFx)
Founder, SignalPro Technology · Last updated July 9, 2026

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