Risk Management

Spread

Definition

The difference between the bid (sell) and ask (buy) price of an asset. Represents the broker's profit and the trader's cost of entry.

Example

EUR/USD spread of 0.8 pips during London session vs 2.5 pips during Asian session shows how liquidity affects costs.

Explore More

Trading School (311 Lessons) Full Trading Glossary EUR/USD Signals Gold Signals Best Forex Signals 2026 Best Prop Firms 2026 Best Forex Apps Auto-Trade Signals

Learn Trading with SignalPro

518 trading terms, 311 lessons, and AI-powered signals — all free to start.