📈 The Bid, The Ask, and The Spread — The Real Cost of Every Trade

📈 The Bid, The Ask, and The Spread — The Real Cost of Every Trade

💡 The Lesson

Every time you click buy or sell, you pay a hidden fee — it’s called the spread.
It’s small, but it adds up fast.
Understanding it is the first step to becoming a cost-efficient trader.

💰 Bid vs Ask Explained

When you look at your chart, there are always two prices:

The difference between them = Spread.
Example:
EURUSD = 1.0850 (Bid) / 1.0852 (Ask) → spread = 2 pips.

If you buy, you enter at 1.0852 and you’re instantly down 2 pips.
That’s the cost of liquidity — your “entry tax.”

⚙️ Why It Matters

• Scalpers hate wide spreads — they eat profits.

• Swing traders ignore them — they’re small compared to larger moves.

• Brokers earn from spreads — not just commissions.

Even if you win 60% of trades, poor spread awareness can quietly destroy your edge.

🔑 Pro Tip — Trade Smart, Not Expensive

✅ Trade during active sessions (London + New York overlap)
✅ Stick to major pairs — they have the tightest spreads
✅ Use limit orders when possible
✅ Avoid trading during news spikes — spreads explode

🚀 Takeaway

Your strategy might be perfect, but if your spreads are high — your math is wrong.
Know your cost per trade.
Because in trading, profits are earned on entries, not exits.

📢 Join my MQL5 channel for more trading fundamentals and real examples:
👉 https://www.mql5.com/en/channels/issam_kassas