Orders and execution · Rookie
Bid-ask spread
Also searched as: spread, bid offer spread
What does Bid-ask spread mean?
The bid-ask spread is the difference between the quoted selling and buying prices. It is an execution cost that matters even when a product advertises zero commission.
Example
Buying at 1.1002 and immediately selling at 1.1000 loses two pips before other costs.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
Spreads can widen when conditions change, affecting short-duration trades and exits.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.