📈 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
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Scalpers hate wide spreads — they eat profits.
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Swing traders ignore them — they’re small compared to larger moves.
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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
