What is Spread?
Spread: The difference between the buy (ask) and sell (bid) price of an instrument; the main cost of a trade on most trading accounts.
More terms
- Risk/reward ratio
- A comparison of a trade's expected profit with its possible loss; 1:2 means risking one dollar to make two.
- Segregated client funds
- Keeping client money in bank accounts separate from the broker's own funds so it cannot be used for its business or debts; required by stron...
- Slippage
- The difference between the price you asked for and the price your trade actually filled at, usually during news or thin liquidity.
- Stop out
- The automatic closing of your losing positions when your margin level reaches the minimum, set at 50% for retail clients in Europe, the UK a...
- Stop-loss
- An order that closes your position automatically at a price you set in advance, limiting your loss if the market moves against you.
- Swap
- An amount charged or paid when you hold a position past the end of the trading day, reflecting the interest-rate difference between the two...