Spread

The invisible cost on every single trade you make.

What it is

The spread is the difference between the bid price (what you can sell at) and the ask price (what you can buy at). When you open a buy trade, you enter at the ask and exit at the bid. This means every trade starts slightly in the red, you need the price to move at least the spread distance just to break even.

Why it matters more than you think

On EUR/USD with a 1-pip spread, a single round-trip trade on 1 lot costs you about $10. Trade 5 times a day, 20 days a month, and you've paid $1,000/month in spreads alone, on a $100,000 account, that's 1% per month in invisible costs. Now imagine you're trying to hit an 8% profit target.

Fixed vs. variable

• Fixed spread: Always the same, regardless of market conditions. Predictable but usually wider.
• Variable (raw) spread: Fluctuates with liquidity. Tight during London/NY sessions, can blow out during news events or low-liquidity hours.